WASHINGTON—From replacing the CFPB’s director to a million dollars in credit union support for a senator who lost his race, political experts addressed what transpired during the latest elections and what lies ahead for the movement under a new administration.
Washington credit union advocate John McKechnie noted a tax bill will be addressed in the next Congress.
“As far as the agenda in the next Congress, the new Trump Administration and new Republican Senate majority have telegraphed their intention to roll up their sleeves and get to work on a tax bill next year,” McKechnie said. “I know credit unions have worked hard to cultivate relationships on both sides of the aisle, and from my soundings on Capitol Hill I know we have a lot of friends on key congressional committees. The tax reform debate may test those relationships.”
America’s Credit Union Chief Advocacy Officer Carrie Hunt said the trade association is looking forward to working with the Trump Administration.
“Just as we look forward to working with members of Congress on both sides of the aisle who support credit unions and the issues that are most important to us,” Hunt said.
CFPB And NCUA
Turning to the regulatory space, Hunt reminded that NCUA Chairman Todd Harper and Board Member Tanya Otsuka, both Democrats, will remain in their seats. However, the Trump Administration will name a new chairman, noting Republican Vice Chairman Kyle Hauptman’s term is up in 2025.
Hunt emphasized ACU has expressed a great deal of concern with CFPB rulemaking.
“From our perspective there has been some regulatory overreach and we question the authority of the CFPB to continue using some of this Unfair, Deceptive, or Abusive Acts or Practices authority,” she said. “We anticipate we would see a new CFPB director in short order, and hopefully we'll see some relaxation of regulations that cause great concern for credit unions.”
Hunt, stressed, too, irrespective of the administration, ACU will be “fully engaged and protecting the credit union tax exemption.”
Tester Loses
Asked about the $1-million ACU PAC expenditure for Montana Senator Jon Tester (D), who lost his race against Republican Tim Sheehy, ACU Head of Political Affairs Trey Hawkins said the trade group knew that race would be tight.
“Anyone that's been following credit union advocacy and issues knows John Tester has been one of our strongest champions going back over decades of service in the Senate Banking Committee. Obviously, heading into the election, we knew he faced a very tough, uphill battle,” said Hawkins.
As CUToday.info reported, ACU’s PAC committed $1 million to Tester weeks before the elections for independent expenditures in direct mail, digital ads and text messages.
“When I was at CUNA, I ran our political program and I’m keenly aware that you have an obligation to help your friends, especially those in tough races,” said McKechnie. “You have a PAC to help create a favorable legislative environment. Having said that I think the amount of the Tester expenditure raised some GOP eyebrows on Capitol Hill, and it remains to be seen if there are repercussions.”
An Oct. 7 article in Politico focused on ACU dropping $3.6 million to support congressional allies in the final weeks before the election. The article pointed to the support for Tester, stating, “The association’s PAC plans to spend $1 million alone on independent expenditures boosting vulnerable Sen. Jon Tester.”