WASHINGTON–Five members of Congress appeared before credit unions on the last day of CUNA’s GAC, addressing everything from the “bloated” federal budget to cannabis banking to opposition to crypto-currency—but there was bipartisan agreement by each that they support credit unions.
Here’s a look at what credit unions were told:
Americans Are Frustrated, But Better Days Lie Ahead
WASHINGTON–After criticizing Congress and federal spending, among other issues, one member of Congress told attendees at CUNA’s GAC the future will be brighter after the mid-term elections, while also calling for more support for the people of Ukraine.
Rep. Tom Emmert (R-MN) told his audience “Congress has spent millions of dollars in so-called COVID relief. In the House some of our members would like to pass even more big, heavy, what I’m going to call bloated, spending packages, like the Build Back Better Act. And all of us have been passing on our budget responsibilities with ongoing spending resolutions.”
Emmert said the House and Senate are supposed to work to pass an annual budget by Sept. 30 of each year, something that hasn’t happened since 1998.
“You wonder why the American public has been frustrated: they don’t realize this is their frustration,” he said. “Government is not working because we are not following the rules.”
Yet despite that view, Emmert said he also believes “the future is bright.”
“We are making progress on your credit union stuff. You’re going to see the Credit Union Governance Act passed through the House and Senate in next two weeks. Good things are happening under the service,” said Emmert. “Why so important. Our financial institutions have borne the brunt of out of control government spending. In spite of all the heroic efforts you have done on behalf of your membership, the unfortunate reality is you are still dealing with burdensome regulation. If Congress will work together—and while we try to keep Ukraine in perspective—we have to get America back working again and the solution is right here in this room.
“I think times are going to get better. I think Congress is going to work better after this next election,” Emmert continued. “We all live in America. We all want essentially the same things and doggone it we’re going to start working together to get those things done so people can have a better life.”
Tax Exemption Not Going Anywhere
WASHINGTON–Rep. Linda Sanchez (D-CA), a member of the House Committee on Ways & Means, which also deals with tax issues, said the committee has worked on improving equity and removing “opportunity caps.”
“When you work on tax issues you have the added burden that it can seem really academic, but tax policy does make a difference,” said Sanchez. “I know it’s a perennial fear that Congress will take away credit unions’ tax-exempt status. I am here today to tell you I am committed to protecting it. I know my colleagues on Ways and Means feel that way, as well.”
Sanchez praised credit unions for their work in getting out Paycheck Protection Program loans, and said she has toured credit unions in her district and witnessed how “small loans are giant to the people they impact.”
‘They Don’t Have Your Best Interests at Heart’
WASHINGTON–Rep.
(R-MO), a member of the House Financial Services Committee, made it clear to GAC attendees where he stands on government and regulation.
“We’ve seen this administration take a huge tack to the left. They want to regulate everything, including your business,” said Luetkemeyer. “You look at the people they are nominating to regulators and these people are not the people who have your best interests at heart. They believe in using regulation to micromanage your businesses. Some of them have wanted to run some banks and credit unions out of business.
Luetkemeyer was very critical of the CFPB under its new director, Rohit Chopra, and said the Bureau is going to be “punitive” on overdraft fees.
He said he is sponsoring legislation that would provide greater oversight of the CFPB and remove the CFPB director from the FDIC board.
Other issues addressed by Luetkemeyer included:
- The SBA. “We have problems there. I support the SBA. But the big problem the EIDL program has a 30% fraud rate. That means one third of $290 billion was fraud. I am going to have a bill that takes away direct lending authority from SBA and gives it to banks and credit unions.
- Postal Banking. “I’m sure you’re scratching your head over this one. I think we ought to let the banks deliver mail rather than the post office deliver loans.”
Going to Get SAFE Act Passed
WASHINGTON–The long-time sponsor of reform of federal laws related to serving cannabis businesses, Rep. Ed Perlmutter (D-CO) noted his SAFE Act keeps getting closer to the finish line, before encountering obstacles.
“The bill has passed in the House six times, and when it gets to the Senate the Republicans said bill too big and too broad. They weren’t prepared to deal with anything related to marijuana. Democrats have passed it but now they say it’s too limited and too narrow,” said Perlmutter, who is not running for reelection and who worked as an attorney on behalf of credit unions prior to being elected. “It’s one of those things where you can’t win, but we are going to win. We just added it to the America Competes Act. I’m going to keep adding it to anything I can until we pass the darned thing.”
Separately, Perlmutter said the Financial Services committee will be looking at climate risk, service to small and minority owned businesses, cyberthreats and overdraft fees.
No Support for Crypto
WASHINGTON–Rep. Brad Sherman (D-CA) is a well-known and long-time supporter of credit unions (in 25 years in Congress he has spoken at 24 GACs), but the same can’t be said for cryptocurrency.
“Crypto means hidden, currency means money, so cryptocurrency means hidden money,” said Sherman. “It’s used by oligarchs and others.”
Typically safely re-elected Sherman said he has angered the “crypto gods” and is now seeing money from crypto companies and others flowing to his opponents.
As for credit unions, Sherman said, “You have a tremendous advantage. People like you. I get stopped in the grocery store and people say, ‘Hey, Sherman, thanks for helping credit unions.’ No one ever stops me and says ‘thank you for helping hedge funds.’