Removing Barriers Blog

HFSC advances CLF legislation
Posted June 24, 2021 by CUNA Advocacy

Earlier this week, the House Financial Services Committee held a markup of a number of bills including H.R. 3958, the Central Liquidity Facility (CLF) Fairness Act.  This legislation would better protect credit unions from unexpected liquidity issues now and in the future.  CUNA wrote a letter of support to the Committee prior to the markup.  H.R. 3958 passed out of the Committee by a party-line vote of 28-22.

If enacted, H.R. 3958 would make the following CARES Act changes (scheduled to expire at the end of 2021) permanent:

  • Increasing the CLF’s borrowing authority to 16 times the capital paid in (up from 12 times), meaning that, for every $1 of capital and surplus, the CLF can now borrow $16.
  • Making it easier for credit unions to join the CLF through their corporate credit union.
    These enhancements were originally set to expire in December 2020 but were extended through the end of 2021 through the Consolidated Appropriations Act of 2021.