WASHINGTON–With credit unions still focused on priorities in the lame duck session of Congress, attention is already turning to what the 118th Congress might hold when it convenes next year—and it’s going to be tight.
With the long-predicted “red wave” having not materialized in the mid-terms, with the Republicans having a slight majority in the House and the Democrats holding the Senate by a slim majority, any legislation that moves in the next Congress is going to require strong bipartisan backing, explained Brad Thaler, VP-legislative affairs with NAFCU.
“With it being tight, it’s going to be hard for either party to move legislation that is partisan or controversial, because whether in the Senate with the Dems or the House with the Republicans, you don’t have any votes to lose. It makes it trickier for leadership. There’s going to be a lot of vote counting. For things to pass, it's going to need bipartisan support.”
What Has a Chance?
So, what kinds of issues might have the kind of bipartisan backing that is needed?
“From the credit union perspective, privacy and data security has not been a partisan issue,” said Thaler, offering one example. “We saw kind of bipartisan framework this year, but it hasn’t quite passed. I expect we’ll also see work in crypto (legislation), given what has happened with FTX recently. Crypto hasn’t really ben partisan, there have just been different positions. They may find common ground on a bipartisan stablecoin bill. These don’t break down across hard party lines.”
Thaler added the Credit Union Board Modernization Act has also had bipartisan support, and if not passed in this Congress could likely pass forward to the next. He noted members from both parties do want some legislation to be enacted, as it provides them with evidence they are getting things done.
Compromises?
Given the tight margins in Congress, getting legislation passed often requires all parties involved to swallow portions they oppose if they want that which they support included, and Thaler said that will likely be an issue in the 118th Congress.
“But that is going to depend on what emerges,” he said. “In our case, we are always going to be defending credit unions. But there could be areas such as regulatory relief in a GOP House, where everybody gets something. There is something in it for banks, something for credit unions; a package like that is probably smaller and crafted in a way to get support.”
Priorities in the Lame Duck
Meanwhile, in the Lame Duck session, as CUToday.info reported here, retailers remain very active in supporting the Credit Card Competition Act, which is just as adamantly opposed by credit unions.
“It is something we are still watching in the lame duck session,” said Thaler. “There are probably only a couple of big bills, such as the (National Defense Authorization Act) and an omnibus spending bill, that are likely to pass. Those are the kinds of bills that get a lot of things added to them. Our first goal is to be vigilant there. If not this Congress expect it to come back again next year. We don’t’ expect retailers to stop now.”