ARLINGTON, Va.–A series of executive orders signed by President Trump aimed at stimulating the economy and whose constitutionality is being challenged will likely not help nor hinder Congress as it seeks to pass a phase IV stimulus package of its own, according to a NAFCU executive.
Carrie Hunt, EVP and general counsel with NAFCU, said Congress is likely to continue its work at the pace at which it was already proceeding, regardless of the president’s executive orders.
“My response might change if we get into September or even October and there is no stimulus,” Hunt told CUToday.info. “We need to make sure whatever package passes addresses what is needed. We had always anticipated the phase four package would be more methodical and should have a laser focus on where there are specific needs and not be politics for politics’ sake. We are hopeful, and it’s why more than ever we need our members to engage with their representatives.”
‘Strong Evidence’ For CDFIs
One area in which there remains considerable proposals in Congress is additional funding—in some proposals significantly increased funding—for community development financial institutions (CDFIs). Hunt said the funding is well deserved.
“We want to ensure the dollars go into communities where they are needed, and there is strong evidence that community development financial institutions do that,” Hunt said. “CDFIs are an existing mechanism that we know work. They get dollars into the community, in contrast to the PPP. We need to lean on what works.”
Evolving Demands from CUs
Separately, Hunt said what NAFCU-member credit unions are asking of the trade group continues to evolve as the coronavirus pandemic has continued to rage.
“We’ve gotten past the shock of everyone shutting down and the immediate impact on operations,” she said. “The longer this has continued the issues that are affecting our members have become more about forbearances and branch closures, areas where members are impacted.”