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House passes measure to extend debt ceiling to December
House leaders Tuesday passed a measure to extend the debt ceiling until early December by a 219-206 vote. The agreement, approved by Senate leaders late last week, sets up a busy December as Congress deals with the expiration of the debt ceiling, as well as the expiration of a continuing resolution for funding on Dec. 3. The measure comes less than a week before the Oct. 18 deadline to avoid a default, as indicated by Treasury Secretary Janet Yellen.
Congress is expected to consider the Build Back Better Act (BBBA) at the end of this year, which could be a medium for addressing the debt ceiling if a bipartisan agreement is not reached.
NAFCU has led the fight against two provisions in BBBA that have been a major concern for credit unions. The association continues to advocate against the inclusion of a burdensome new IRS reporting requirement for financial institutions to annually submit information to the IRS for all accounts with over $600 in inflow or outflow. NAFCU encourages members to urge Congress to oppose the requirements through a series of grassroots efforts. Yesterday House Speaker Nancy Pelosi (D-CA) indicated that the House still plans to try to include this provision in the final reconciliation package.
Also, the association continues to voice its concerns against another proposal included in the BBBA that would grant the Small Business Administration (SBA) direct-lending abilities. Under the provisions, the SBA could generate and distribute 7(a) loans of $150,000 or less, directly to borrowers or “through partnerships with third parties.”
Senate Republicans sent a letter to Senate Majority Leader Chuck Schumer, D -N.Y., House Speaker Nancy Pelosi, D-Calif., and the Senate and House Small Business Committee Chairs, Ben Cardin, D-Md., and Nydia Velasquez, D-N.Y., expressing the same concerns on the proposal noting that the program would be costly and inefficient, ultimately resulting in a detriment to both lenders and borrowers.
Stay tuned to NAFCU Today for the latest on the legislation as it moves through Congress.