WASHINGTON–With the state of the next federal budget, the National Defense Authorization Act (NDAA) and a coronavirus relief package all in flux in Congress and Washington, the credit union trade associations are seeking to ensure CU priorities find their way into one of the pieces of legislation being considered.
Funding for the federal government officially expires on Dec. 11, and how Congress will act remains very much up in the air. CUNA’s chief advocacy officer, Ryan Donovan, and NAFCU’s vice president of legislative affairs, Brad Thaler, said they believe Congress will pass a stopgap spending measure to give Congress more time to deal with the issues in front of it.
Donovan and Thaler also both indicated their priorities are aligned, with the trade groups seeking extensions of various CARES Act provisions, including provisions related to troubled debt restructurings (TDRs) and NCUA’s Central Liquidity Facility (CLF).
‘Should Be an Easy Lift, But…’
As Thaler noted, those provisions are scheduled to sunset on Dec. 31 but an extension has bipartisan support in Congress.
“Nine months ago (when the CARES Act was passed), the hope was this would all be over by now,” Thaler pointed out. Extending the provisions, he added, “should be an easy lift, but in Congress it’s not always easy.”
Like NAFCU, Donovan said CUNA is also supporting as part of the appropriations process increased funding for the CDFI Fund, the Community Development Revolving Loan Fund and for the cooperative development program.
Both NAFCU and CUNA are also supporting simplifying the PPP loan forgiveness process, especially for smaller loans.
In terms of a new coronavirus relief package, Thaler said he does not expect it to be as large as the earlier relief legislation, especially given pushback in the Senate. He said the relief could be included in a larger omnibus bill passed by Congress before the lame duck session comes to an end.
What About Pot Bill in Senate?
The House has passed sweeping legislation that would decriminalize marijuana and expunge nonviolent marijuana-related convictions, which would remove federal penalties for serving cannabis-related businesses that have kept many CUs from serving the market. But the Senate is not expected to act this year; what about the next session of Congress? “What happens in Congress may depend on the outcome of the special election in Georgia,” said Thaler, referring to the upcoming vote that will determine the state’s two senators and whether there will be two new Republicans, two Democrats or one person from each party joining the Senate. That vote will tip the balance of power in the upper house. “The Senate is not likely to go as far as the House,” said Thaler of any potential legislation. “I do think a marginal (cannabis) banking bill could emerge in the next Congress.”
CUs Supporting Incumbents in Georgia Senate Race
Speaking of the Georgia race, CUNA’s Trey Hawkins said the Credit Union Legislative Action Committee (CULAC) and the Louisiana league backed Luke Letlow (R), who won a special election in the Bayou State. In addition, Hawkins said CUNA and the League of Southeastern Credit Unions are backing the two Republican candidates in the special election for the Senate in Georgia: Kelly Loeffler and Sen. David Perdue.