March 11, 2022

Omnibus spending package heads to the President’s desk

CapitolLate Thursday, the Senate voted (68-31) to pass the massive $1.5 trillion omnibus spending package to fully fund the federal government. Passed by the House Wednesday evening, the package now heads to President Joe Biden’s desk to be signed into law. Of note, the package includes NAFCU-sought legislation, the Credit Union Governance Modernization Act (CUGMA), which will modernize the Federal Credit Union (FCU) Act’s provisions related to member expulsion in order to keep credit unions, their members, and staff safe from illicit behavior.

“NAFCU commends the passage of this package and applauds all the Congressional leaders who worked tirelessly to include legislation that is critical to protecting credit unions across the country,” said NAFCU President and CEO B. Dan Berger. “This omnibus package is a win not only for credit unions that have relentlessly helped their members navigate the financial insecurities brought on by the pandemic, but for Main Street small businesses and families who rely on credit unions for financial services.”

As previously reported by NAFCU, the omnibus bill also contains the Adjustable Interests Rate (LIBOR) Act, introduced by Representative Brad Sherman, D-Calif., which would provide clear guidance and a consistent federal standard for contracts with interest rates transitioning away from the London Interbank Offered Rate (LIBOR) index for financial products – which ends June 2023. Of note, the legislation would also direct the Federal Reserve to determine replacement rates that can be used for contracts lacking fallback language by providing a safe harbor should the contract not specify a non-LIBOR replacement rate.

Other key elements in the package include:

  • new provisions on cybersecurity that require critical infrastructure entities and federal agencies to report cyber incidents within 72 hours to the Cybersecurity and Infrastructure Security Agency and any ransomware payments with 24 hours. The cyber legislation is similar to language that was originally included in the Senate version of the National Defense Authorization Act last year but ultimately dropped in the final package; and
  • $295 million in annual appropriations for the Community Development Financial Institutions Fund and $1.545 million for the NCUA’s Community Development Revolving Loan Fund. The legislation also includes report language to prioritize those loans for minority depository institutions and smaller credit unions.  It also includes report language to encourage the NCUA to look for ways to increase access to credit unions for the underserved.

NAFCU remains engaged with Congress as they work to implement the legislation passed in the Omnibus and will keep credit unions up-to-date on the movement of the bill via NAFCU Today.