WASHINGTON—NAFCU and CUNA are urging the House to adopt an amendment from House Chief Deputy Whip Patrick McHenry (R-NC) that would prohibit the U.S. postal service from providing banking services.
NAFCU and CUNA have previously raised concerns over the postal service offering banking services.
The CU trade associations made the recommendation in a letter sent with the American Bankers Association and Independent Community Bankers of America to House Speaker Paul Ryan (R-WI), Minority Leader Nancy Pelosi (D-CA), McHenry and members of Congress. The amendment would be added to the financial services and general government appropriations bill, which is expected to receive a House vote Wednesday.
In the letter, the groups wrote in support of the postal service and long-term solutions to keep it functioning effectively. However, "postal banking is not one of those solutions."
USPS Urged to Focus on Core Business
"Congress should encourage the Postal Service to focus on its core business of physical mail delivery, and not be distracted by expanding the mission to businesses outside of the Postal Service’s area of expertise," the letter states. The letter notes that the postal service has also argued against it providing financial services.
NAFCU noted that it holds that credit unions already offer loan products and savings mechanisms for their members, and consumers are best served by institutions that can offer a full range of financial services and develop relationships with their members.
McHenry, who also serves as vice chairman of the House Financial Services Committee, recently sent a letter to Treasury Secretary Steven Mnuchin urging a task force on postal reform to prohibit postal banking.