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As several coronavirus pandemic-related relief provisions are set to expire at the end of the month, members of the Senate Banking Committee discussed the need for additional relief with Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin during a hearing Tuesday. Of note, supporting small businesses and ensuring underserved communities are not left behind were key topics.

The CARES Act tasked the Fed and Treasury with managing several programs to support consumers, businesses, and communities amid the pandemic. The Treasury Department has coordinated implementation of the paycheck protection program (PPP) with the Small Business Administration and the Fed created and expanded several lending facilities, while also using its available tools to their fullest potential, with support from the Treasury.

A point of contention during the hearing was Mnuchin's recent announcement that some of the Fed's emergency lending facilities would expire at the end of the year and return the unused funds. Mnuchin told senators Tuesday that Congress must either reauthorize or reallocate the funds for those programs.

Powell agreed that more fiscal relief is needed to support economic recovery and called on Congress to act quickly. Mnuchin, who has been leading the administration's relief negotiations, indicated that he was continuing discussions with both Republican and Democratic leadership in Congress. He also said he'd support Congress authorizing the remaining PPP funds to be used for second loans to businesses in need.

Ahead of the hearing, NAFCU outlined for the committee several measures under the CARES Act that should be extended or modified to ensure credit unions and their members have the resources and flexibility needed to recover from the pandemic, including related to the PPP, economic injury disaster loans (EIDLs), the Central Liquidity Facility (CLF), and troubled debt restructurings (TDRs).

The association sent a similar letter to the House Financial Services Committee, which is set to hear from Mnuchin and Powell today at 10 a.m. Eastern.

NAFCU will monitor today's House Financial Services Committee and keep credit union priorities top of mind with lawmakers and regulators as relief discussions continue.