WASHINGTON—While Congress is focused on passing legislation that would avert a federal government shutdown, credit unions are hopeful a provision providing relief to financial institutions serving cannabis businesses could be included in other legislation.
It’s all part of a crowded and contentious agenda in the House and Senate in the approximately two weeks remaining in the current Congress. Funding for the government currently expires on Dec. 21.
“The House and Senate return this week and their main goals will be to figure out how to fund the government past Friday night at midnight,” said CUNA Senior Advocacy Officer Ryan Donovan, reminding that Congress recently passed a two-week continuance resolution that funds the government and authorizes the National Flood Insurance Program through midnight on Dec. 21.
Donovan added that Congress is expected to reach an agreement this week on a bill that at least funds the government through the remainder of the fiscal year.
“There is a chance the House may vote on H.R. 88, the Retirement, Savings and Other Tax Relief Act of 2018,” said Donovan. “It’s possible that legislation could be included in the end-of-year government funding bill.”
Donovan said the Senate this week will begin by considering the First Step Act, Congress’ criminal justice reform bill.
‘Some Safe Harbors’
“We understand that Senator (Cory) Gardner (R) of Colorado may attempt to offer his state’s legislation that would provide some safe harbors for credit unions and banks that serve the cannabis industry,” said Donovan. “He may try to offer it as an amendment to the (First Step Act) legislation. But it is unclear at this point whether he will be able to secure the votes on that legislation if he files and authors it…In any case, we are supporting that.”
As the House and Senate continue work on government funding legislation, including the financial services and general government (FSGG) appropriations measure, NAFCU said it is heavily advocating for full funding for the NCUA's Community Development Revolving Loan Fund (CDRLF) and Treasury's Community Development Financial Institutions (CDFI) Fund, which is included in the Senate-passed version of the bill. Both Senate- and House-passed bills include full funding for the Small Business Administration's (SBA) 7(a) and 504 loan programs, which are used by credit unions.
The House may also continue its work on year-end tax legislation. As CUToday.info reported, last week, NAFCU Vice President of Legislative Affairs Brad Thaler wrote leaders of the tax-writing committee urging that a technical fix be provided to the Tax Cuts and Jobs Act (TCJA) so a 21% excise tax is not imposed on certain not-for-profits in any year-end tax bill.
Also on Washington Agenda
Other events in Washington this week:
- The Federal Open Market Committee begins its two-day policy-setting meeting today. It is widely expected that this meeting will end with another quarter-point rate hike.
- The Financial Accounting Standards Board (FASB) is holding a meeting Wednesday to discuss implementation concerns regarding its current expected credit loss (CECL) standard.
- The House Financial Services Committee will hold a hearing on the nation's debt Thursday.