WASHINGTON—Ahead of a busy week in Washington, CUNA is also reflecting on the victory for credit unions in Iowa over the weekend.
Meanwhile, in Washington, the focus remains on the regulatory relief bill credit unions and banks continue to try to pry out of Congress.
As CUToday.info reported, a proposed tax on credit unions was not included in a tax reform bill approved by the Iowa legislature that is expected to reduce taxes on Iowans by more than $2 billion over the next six years.
“Congratulations to Iowa credit unions and to the Iowa league for their victory in the tax reform legislation over the weekend,” said CUNA Chief Advocacy Officer Ryan Donovan. “The real winners here, however, are Iowa credit union members. This is a tremendous advocacy victory for Iowa credit unions, and CUNA is proud to have worked with the league, CUNA Mutual Group and other organizations to support the league’s efforts on the ground. We are very proud of their success.”
As CUToday.info has reported extensively, Iowa’s credit unions have been fighting an all-out effort by the state’s bankers, which launched an aggressive campaign in the state to require credit unions to pay the same 5% franchise tax they do. Credit unions in Iowa are already taxed on their reserves.
The banks had been sponsoring a multi-media campaign calling for an end to the “free ride” they say credit unions enjoy. Credit unions responded by citing their member-owner status and stating they pose no threat to banks, which have 90% of the market share in Iowa. Newspapers across the state have been filled with letters to the editor arguing both sides of the issue.
On the DC Agenda
Meanwhile on Capitol Hill this week, NAFCU said it remains focused on regulatory relief.
“NAFCU will be active on Capitol Hill this week pushing for credit union regulatory relief on several fronts as the House prepares in the coming weeks to consider the NAFCU-backed Economic Growth, Regulatory Relief, and Consumer Protection Act (S 2155),” the trade association said.
NAFCU noted that it has been working to advance S 2155 since it was introduced by Senate Banking Committee Chairman Mike Crapo (R-ID) and several Democratic members of the committee in November. The association also has an active grassroots campaign urging credit unions to contact their lawmakers in support of this regulatory relief effort.
S 2155 includes various credit union regulatory relief measures related to member business lending (MBL) and the Home Mortgage Disclosure Act (HMDA). The bill passed the Senate in March.
The House today is scheduled to consider a bipartisan bill – the Small Business 7(a) Lending Oversight Reform Act of 2018 (H.R. 4743) – that would improve the Small Business Administration's (SBA) 7(a) loan program. A NAFCU witness testified in favor of improvements to the SBA's 7(a) in January, and the legislation advanced out of the House Small Business Committee in March. Similar legislation is also pending consideration in the Senate.
The House is also expected to vote on SJ Res. 57 this week. This resolution invokes a new use of Congressional Review Act (CRA) authority and would repeal the BCFP's 2013 guidance on indirect auto lending. The Senate passed the resolution last month, and House action would send it to the president, who is expected to sign it.
Also on Capitol Hill this week:
- On Wednesday, both the House Ways and Means Committee and a House Education and the Workforce subcommittee will look at how to address the jobs gap
- On Thursday, the House Budget Committee will hold a hearing allowing House members to share their ideas for the fiscal year 2019 budget resolution