WASHINGTON—With most of the midterm races determined, attention now turns to the next Congress and whether it will be more amenable the kinds of regulatory relief credit unions have been seeking—as well as whether new attention to tax reform could again bring scrutiny to the CU tax exemption.
Credit unions will be paying particular attention to how the committees in Congress shake out as new chairmen take over in the House and Senate.
“There will be a lot of new faces, with as many as 10 new people on the House Financial Services Committee,” noted Ryan Donovan, SVP-legislative affairs. “There is potential for a lot of action on tax reform. For credit unions, that is something we are going to have to be engaged.”
Sen. Richard Shelby (R-AL) will be taking over as chair of the Senate Banking Committee, and the CU trade groups are looking at Shelby’s history for signs of what he might have planned for the Banking Committee. Shelby, for instance, voted against both the TARP legislation and against repeal of the Glass-Steagall Act during his tenure in Congress.
“It will be interesting to see his agenda,” said Donovan.
Also worth watching: how Shelby (and Congress) deal with nominations for federal agencies that are made by the Obama Administration. That includes the potential to nominate someone to replace current NCUA Chairman Debbie Matz on the board.
Credit unions will once again be pushing long-time priorities in Congress, including Member Business Loan relief and a bill to allow for supplemental capital, as well as regulatory relief across a swath of rules. There is support for the banking industry for the latter, as well.
The credit union trade groups aren’t just waiting for the new Congress to convene in January, as a lame duck Congress will still meet once more.
“If history is instructive, there is a flurry of last-minute legislative activity,” said Donovan. “So that gives us some hope. We are going to press that opportunity to get legislation passed.”
Among the legislation the lame duck Congress could consider are bills related to privately insured credit unions gaining access to the Federal Home Loan Banks, and bills related to cybersecurity.
For a look at how the races have played out and where credit union-backed candidates won and lost, go here.