WASHINGTON–Although there are numerous other issues on the agenda, this week two words are on the minds of everyone in Washington, including credit unions: “government shutdown.”
Funding for the federal government is scheduled to expire on Oct. 1, and it will be up to a divided Congress to either come up with an agreement or close many government functions. If such an agreement, most likely in the form of a continuing resolution (CR), is not found, federal agencies will stop all actions deemed non-essential, and millions of federal employees, including members of the military, won't receive paychecks.
CUNA Deputy Chief Advocacy Officer for Federal Government Affairs Jason Stverak noted there are a number of appropriations acts before the house, including the Department of Defense Appropriations Act, the Department of Homeland Security Appropriations Act, The Agriculture Rural Development, Food and Drug Administration and Related Agencies Appropriations Act, and the Department of State Foreign Office and Related Programs Appropriations Act, all currently before the House.
A ‘Tall Mountain’
“It would be an incredibly tall mountain to climb to get the House to pass all the funding bills over to the Senate for the Senate to consider it, pass them and do it in time to prevent the government shutdown,” said Stverak.
As has been the case in prior times when government shutdowns loomed, Stverak said CUNA has been “working with members on both sides of the aisle to remind them of the impact on credit unions and, more importantly, our credit union members, of a potential shutdown.”
Some Hope
Still, there is some hope. NAFCU’s VP-Legislative Affairs Brad Thaler reminded, “We know that sometimes shutdowns get saved at the very last minute and history has shown that so we'll see what happens.”
Like CUNA, Thaler said NAFCU has been in touch with its member credit unions most likely to be directly affected by any shutdown about having programs in place to help members.
Still Pushing Back on CCCA
Both trade groups indicated they continue to also press back against the Credit Card Competition Act, which has the strong backing of retailers and merchants. An ongoing concern for CUs remains that the legislation or portions thereof could be attached to one of the aforementioned spending bills.
Financial institutions also have allies in opposing the bill, said Thaler, including airlines and labor unions that have said they believe the bill is “bad policy.”
NFIP At Risk
Also at risk without an extension of government funding is the National Flood Insurance Program (NFIP). The lack of the NFIP would have a big effect on housing markets, Stverak reminded.
“We do not want to see a lapse in NFIP authorization, and we hope Congress will act,” said Thaler.
In addition, Stverak said CUNA has been working with state leagues and individual credit unions to provide information on what the shutdown would mean for credit unions, so they in turn can contact their respective representatives.
Hearings to Watch
Credit unions are watching just one hearing this week, but it’s one of considerable interest. On Wednesday, the Senate Banking, Housing and Urban Affairs Committee will hold a hearing on the SAFER Act, follow up legislation to the SAFE Act which has been stalled in Congress.
The SAFER Act also seeks to remove federal prohibitions that keep financial institutions from serving cannabis-related businesses in states in which voters have approved marijuana laws in some form.
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