WASHINGTON–With numerous hearings in Washington this week of interest to credit unions, CUNA has sent a number of letters to House Appropriations subcommittees as they reviewed federal agency budget requests for fiscal year 2020 involving the Department of Treasury, Department of Justice and Internal Revenue Service (IRS).
Among the letters sent:
Subcommittee on Financial Services and General Government
“Retaining the credit union tax status has long been a pillar in CUNA's advocacy priorities,” CUNA said. “The trade association sent a letter for the record to express concerns with provisions in the Tax Cuts and Jobs Act (TCJA) as it seeks to impose an excise tax on certain executive compensation provided by tax-exempt organizations. There are concerns about the lack of parity of the bill as for-profit compensation agreements in effect on or before Nov. 2, 2017 are not affected by this excise tax. CUNA also seeks clarity on the TCJA’s provision to extend Unrelated Business Income Tax (UBIT) to certain employee fringe benefits.” The full letter can be found here.
Subcommittee on Financial Services and General Government
The Treasury’s Community Development Financial Institutions (CDFI) Fund makes grants and other awards to certified CDFIs. CUNA said it “strongly supports the fund as it is being used to grow local economies and serve the most economically distressed communities in the nation. Two credit unions in Tennessee and Missouri are recognized by CUNA to provide examples of how the grant money is leveraged to aid communities in need.” The full letter can be found here.
Subcommittee on Commerce, Justice, Science, and Related Agencies
CUNA said it continues to prompt the DOJ to clarify standards for website accessibility under the Americans with Disabilities Act (ADA). “Credit unions across the country are being hit with frivolous litigation from firms seeking a quick payout. CUNA wrote to Attorney General William Barr shortly after his confirmation to recommend a process to solicit input from stakeholders with the goal of issuing a clear ADA website accessibility standard for which credit unions and other entities can apply,” the association said. “In partnership with the National Federation of the Blind, credit unions are seeking a solution to further increase access to economic opportunities for blind individuals.” The full letter can be found here.
CUNA also sent a letter for the record in support of H. Res. 275, supporting the goals and ideals of “Financial Literacy Month.”
House Financial Services Subcommittee on CRA
CUNA has submitted its letter for the record of a House Financial Services subcommittee hearing on the CRA.
“Credit unions have a track record of fairly meeting the needs of all members-regardless of their race, gender, or socio-economic background,” the letter reads. “Thus, facilitating the partnerships between banks and credit unions can serve as an important mechanism for ensuring that the goals of the Community Reinvestment Act are reached.”
The letter states that while credit unions are not, and should not, be subject to CRA requirements, they play a “critical role” in helping banks meet their obligations to traditionally underserved communities.
Subcommittee on Diversity and Inclusion
CUNA noted credit unions have a long history of providing financial support and counseling to consumers in need. “Financial education is offered to both young and older credit unions. Lending from credit unions is done in a safe and affordable way – including those facing financial struggles – with small dollar, auto and mortgage loan products,” CUNA said. “One recent example of this includes zero interest loans provided to federal workers impacted by the government shutdown. Credit unions are committed to financial literacy and arrange solutions for those facing debt or other financial burdens. The National Credit Union Foundation hosts Financial Reality Fairs where students can experience some of the financial challenges they will face upon graduation.” The full letter can be found here.