WASHINGTON—In a busy week in Washington, credit union trade groups are focused on two key matters: the joint resolution to overturn the CFPB’s overdraft rule and next steps in tax reform legislation.
As CUToday.info reported, the House this week is expected to consider a joint resolution of disapproval of the CFPB’s overdraft rule after the Senate passed the measure 52-48 last week. On the Senate floor, the chamber is expected to try to tackle a compromise budget resolution later this week that seeks to iron out differences between the previously passed House and Senate versions. Both chambers will need to pass such a resolution to begin the reconciliation process and consider tax reform legislation.
DCUC Chief Advocacy Officer Jason Stverak said the next few weeks will be critical for preserving the CU Tax status.
“We're going to continue to advocate strongly on behalf of defense credit unions the entire credit union industry about the incredibly positive impacts of credit unions in every community across this country—and the detrimental impact on communities that would happen if that tax status went away.”
Stverak said DCUC members will be working hard in their districts while the trade association will be reaching out to the Senate Finance Committee chair and ranking members, and the House Ways and Means Committee chair and ranking members.
“We will be reaching out to those congressional members to make sure they understand the harmful impact that would happen if the tax break goes away,” said Stverak. “Specifically, how it would impact credit unions’ ability to serve active-duty servicemembers, their families and veterans.”
Stverak said the Senate is expected to hold a vote on the budget this week.
“What that will likely mean is there will be a vote sometime on Friday, and on Thursday they'll do their vote-a-rama,” Stverak said.
Stverak said DCUC will be working this week to make sure the budget legislation will not contain language that would advance interchange legislation, and watching for possible introduction of the Credit Card Competition Act.
America’s Credit Unions SVP of Advocacy Greg Mesack said ACU will be closely following the budget reconciliation process this week.
“The Senate is going to try to take up its budget resolution this week, something we're also watching,” Mesack said. “That's an important step in the reconciliation process and the tax reform discussion that’s taking place in Washington, dominating most of the legislative agenda…The budget resolution journey will consume several days on the Senate floor, and we’ll have another vote-a-rama, which is always entertaining and interesting to watch.”
OD Rule
Turning to the fate of the CFPB’s overdraft rule, Stverak said DCUC is looking forward to the House passing the legislation, and moving it on to President Trump's desk for his signature. Mesack added that ACU expects the vote to be close in the House on the OD rule, noting voting will be within party lines.
Make Community Banking Great Again
DCUC Monday provided its comments to the House Financial Services Committee in response to Chairman French Hill’s “Make Community Banking Great Again” initiative.In its letter, DCUC advocated for an inclusive approach to strengthen support for all community financial institutions, ensuring credit unions receive the same level of support and regulatory considerations as community banks.
Other events in Washington this week:
Tuesday
- The House Financial Services Committee will conduct a hearing titled "Following the Money: Tools and Techniques to Combat Fraud,” at 10 a.m. ET. Discussion about Rep. Loudermilk’s (R-GA), Financial Reporting Threshold Modernization Act (H.R. 1799) is anticipated, ACU said. The bill would raise the CTR threshold from $10,000 to $30,000
- The House Small Business Committee will conduct a hearing on deregulation, during a hearing titled “The Golden Age: Unleashing Main Street Through Deregulation,” starting at 10 a.m. ET
- The comment deadline for the CFPB proposed rule seeking to prohibit certain terms in consumer agreements expires Tuesday, with public comments accepted until midnight
Wednesday
- The House Financial Services Committee is expected to hold a markup of its version of stablecoin legislation – the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, as well as a bill to overturn the CFPB’s 1071 rulemaking, H.R. 976, among other measures
- The House Judiciary Committee holds a hearing on AI, titled “Artificial Intelligence: Examining Trends in Innovation and Competition,” at 10 a.m. ET
- The comment deadline for the CFPB proposed rule altering data broker practices and expanding reporting requirements on consumer reports expires Wednesday, following a 30-day extension