WASHINGTON—Ahead of the Senate’s vote this week on its version of the FY 2019 Financial Services and General Government (FSGG) appropriations bill, the credit union trade groups continue to advocate for full funding for programs used by credit unions and are further urging the chamber to consider provisions from the House version, including a two-year delay of the NCUA’s risk-based capital (RBC) rule.
Brad Thaler, NAFCU’s vice president of legislative affairs, sent the letter this week to Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Chuck Schumer (D-NY).
Thaler thanked the Senate for fully funding for the NCUA’s Community Development Revolving Loan Fund (CDRLF) at $2 million and Treasury’s Community Development Financial Institutions (CDFI) Fund at $250 million; the House version of the FSGG bill preserves some funding for the programs.
Both NAFCU and CUNA urged Congress to fully fund the programs to ensure credit unions can continue to provide financial stability for low-income members and their families.
Full funding levels for the Small Business Administration's 7(a) and 504 loan programs, which are used by credit unions, are also in both the House and Senate versions.
Regulatory Relief
Thaler urged the Senate to include some of the regulatory relief provisions in the House FSGG bill, which was passed last week, when the chambers reconcile their differences. Most important, Thaler said, is the provision that would delay the NCUA’s RBC rule.
NAFCU noted that it has pushed to delay the rule in order to protect the industry from the adverse effects of this rule. The RBC delay also passed the House in the JOBS Act 3.0.
Thaler also asked for the inclusion of other NAFCU-backed regulatory relief measures in the final conference report, including language from the Mortgage Choice Act, the Financial Institutions Examination Fairness and Reform Act, and the TRID Improvement Act, which are in the House version.