March 15, 2022

POTUS signs $1.5 trillion omnibus spending package

President Joe Biden signed the massive 1.5 trillion omnibus spending package to fully fund the federal government into law Tuesday. Of note, the package includes the NAFCU-sought Credit Union Governance Modernization Act (CUGMA), which modernizes 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.   

The Senate voted 68-31 on Thursday to pass the legislation. 

“NAFCU applauds President Biden for signing this important funding package, which contains substantial legislation aimed at strengthening the credit union industry,” stated NAFCU President and CEO Dan Berger. “This spending package grants protections and clear guidance for credit unions and their members who have endured hardships from the pandemic and has important support for programs like the Community Development Financial Institutions (CDFI) Fund. 

“As we find ways to adapt to the changing economic landscape, the credit union industry remains steadfast in offering financial support for families and Main Street small businesses,” added Berger. 

As previously reported by NAFCU, the omnibus bill also contains the Adjustable Interest Rate 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. 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 CDFI 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 via NAFCU Today.