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NAFCU shares feedback with Yellen on Treasury’s FY 2022-2026 plan
In a letter to Treasury Secretary Janet Yellen, NAFCU President and CEO Dan Berger provided input on the Treasury Department’s strategic plan for 2022-2026. Berger offered several recommendations in response to the plan, specifically noting a need for clearer information on incentives and programs to underserved communities.
“The underutilization of government incentives and programs by underserved communities can be primarily attributed to poor communication and the widespread perception that these tools are difficult to access,” wrote Berger.
Credit unions are an easy choice as trusted partners for Treasury to help disseminate this information and are equipped to meet the financial needs of those in underserved communities, noted Berger. The NAFCU-supported Expanding Access for Underserved Communities Act, currently before the House Financial Services Committee, would allow federal credit unions to add underserved areas to their fields of membership.
In addition, Berger suggested the Treasury strengthen its coordination with non-governmental partners in helping advance financial stability and equitable economic growth by “maintaining robust and consistent lines of communication.” As part of this effort, NAFCU encourages continued information sharing to address cybersecurity risk, specifically between Treasury and government agencies who then communicate with public and private entities.
Of note, Berger reiterated the negative impact of the proposed IRS reporting requirement – currently excluded from President Biden’s reconciliation framework – if it were to be included in the final legislative bill text. NAFCU has been working tirelessly to help credit unions voice their opposition against the provision and to ensure this proposal stays out of the President’s final reconciliation package.
As a final suggestion, Berger called on Treasury to identify and define its strategic goals and share them with public and private sectors, including financial institutions.
“This will provide a distinct framework to help the public understand how Treasury intends to make progress, and in doing so, allow the public to evaluate Treasury’s rules and regulations against that framework,” wrote Berger.
NAFCU remains engaged with Treasury to ensure the credit union industry’s main concerns are addressed. Read the full letter here.