WASHINGTON–The 117th Congress will be heading home after passing the huge omnibus spending package that will keep the federal government operating, with credit unions having gotten some of what they wanted, while other provisions CUs strongly opposed were not included.
Perhaps the biggest issue credit unions were watching was whether the Credit Card Competition Act or any related provisions would be included. That bill, which targets interchange, has been "vehemently" opposed by CUs and their trade groups. It is not included in the omnibus spending deal.
In addition, as CUToday.info reported earlier, the SAFE Act and/or related provisions, were not attached. That legislation would have removed federal prohibitions on financial institutions serving cannabis-related businesses.
The legislation includes $858 billion in military spending and more than $772 billion for domestic programs for the remainder of the federal fiscal year, which ends in September, 2023.
Also Not Included
The funding bill also does not include:
- Any authority for NCUA to oversee third-party vendors. The agency has been requesting such oversight, arguing other agency’s already have it and the lack of such oversight presents security risks, while credit unions and their trade groups have been strongly pushing back.
- Any extension of pandemic-related legislation allowing corporate credit unions to become agent-members for groups of credit unions. NCUA and its board members have also been lobbying in favor of the extension.
- The Credit Union Board Modernization Act
Favored Provisions
Provisions credit unions favor and which are included in the near $2-trillion bill include:
- Increases in funding for NCUA’s Community Banking Development Revolving Loan Fund.
- Increases in funding for the Community Development Financial Institutions Fund (CDFI) to expand lending in low- and moderate-income areas.
- A requirement the Consumer Financial Protection Bureau director brief Congress on the agency’s finances and expenditures once a year. The requirement comes at the same time questions over whether the funding of the CFPB is constitutional remain in the court system, with the Supreme Court being asked to finally weigh in.
Credit unions, along with every other special interest group, will now start over with the 118th Congress, which convenes after the turn of the year, with Republicans holding a slim majority in the House.
NAFCU: Thankful, But Work to Do
“NAFCU commends lawmakers for advancing a funding package that is free of any harmful provisions that would place added burdens on credit unions," said NAFCU SVP-Government Affairs Greg Mesack. "Our credit union members and diligent advocacy team were successful in keeping the Credit Card Competition Act as well as any provision to grant the NCUA with additional third-party vendor authority out of the package. This omnibus also gives CDFI funding a well-deserved boost and directs the Fund to listen to concerns of stakeholders, something NAFCU has pushed for consistently. While the NAFCU-backed SAFE Banking Act and Credit Union Board Modernization Act were not included, we will continue to work with lawmakers in the new Congress to pass legislation that is advantageous for credit unions and their 134 million members.”