WASHINGTON–Credit unions and just about every other interest group in Washington are now left to watch the one last major piece of legislation before Congress for any sign of their priorities—or the proposals they oppose—are included.
But one credit union priority—inclusion of the SAFE Act, which would remove federal prohibitions against serving cannabis-related businesses in states that have legalized pot—is reportedly not included omnibus spending package that is to fund the federal government past Dec. 23 could be as large as $1.7 trillion, according to one Senate leadership staffer directly involved in the negotiations.
The omnibus spending package that is to fund the federal government past Dec. 23 is expected to be the last piece of major business conducted by the 117th Congress before it officially adjourns and the 118th Congress is sworn in after the new year.
“We have been working with offices and staff to ensure credit union priorities as much a possible are included in the final text,” said Deputy Chief Advocacy Officer Jason Stverak.
Among the proposals and bills credit unions are most closely eyeing are the Credit Card Competition Act and language related to giving NCUA third-party vendor oversight authority (which CUs oppose) and the SAFE Banking Act (which credit unions support).
But credit unions are hardly alone in counting on/fearing the spending bill will potentially carry their favored/opposed legislation over the finish line. Others are hoping to attach legislation related to Ukraine, tax policy, presidential election-related language and more.
‘Aways a Long Shot’
As for the SAFE Banking Act or any of its provisions not being included in the spending bill, John McKechnie, senior partner with the Washington advocacy firm Total Spectrum, told CUToday.info, “Despite the outward signs of optimism from supporters, this was always a longshot. There wasn't just one objection, there were several – – some thought it went too far and enabled drug use, some thought it didn't go far enough, especially when it came to decriminalizing marijuana at the federal level. In the end, SAFE never got a critical mass of support necessary to get it across the finish line."
NAFCU Offers Feedback On CDFI TM Methodologies
Separately, NAFCU has sent a letter in response to the Community Development Financial Institutions (CDFI) Fund’s notice and request for comment (RFC) regarding the preapproved Target Market (TM) assessment methodologies, in which it applauds the CDFI Fund for deciding to include persons with disabilities as an Other Targeted Population (OTP) as well as eliminating the geographic boundaries of most TMs in its proposal.
Bit NAFCU said it opposes the specifics of the proposed methodologies as they may cause issues related to fair lending laws. It is urging the CDFI Fund to include the use of proxy data in its preapproved assessment methodologies for all TMs and to be open to “generously approving and publishing methodologies that applicants or certified CDFIs present that offer a simpler means of capturing the populations they are serving.”
The trade group noted a certified CDFI is required to serve an investment area or targeted population by statute and must direct at least 60% of its financial product activities to one or more approved TMs, and added that it appreciates the CDFI Fund eliminating the geographic boundaries of most TMs in its proposal.
“NAFCU’s CDFI members have expressed in the past that the map containing the TM geographic boundaries would constantly change, making it difficult for CDFIs to maintain service to their TMs,” NAFCU said. “NAFCU supports the proposed certification requirements’ inclusion of all loans made to any qualified borrower, no matter where they live, in the 60 percent goal. NAFCU further supports the CDFI Fund measuring an applicant’s TM financing activity over the most recently completed fiscal year only, eliminating the requirement that the applicant also provides data on its year-to-date activity.”
NAFCU is also urging the CDFI Fund to follow the Administrative Procedure Act (APA) when issuing new rules.
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