October 08, 2021

Senate leaders reach a deal to push back debt ceiling deadline

ColumnsSenate leaders on Thursday reached an agreement on a measure that would extend the debt ceiling until December and the Senate cleared the measure last night. The House is expected to pass the measure next week, pushing off any chance of U.S. default until December.  

The agreement sets up a potentially busy December for Congress, as lawmakers will have to deal with not only the new expiration of the debt ceiling, but also an expiration of the continuing resolution for funding the government on Dec. 3.  Congress could also still be considering the Democratic budget reconciliation package, the Build Back Better Act (BBBA), at that time, which could become a vehicle for addressing the debt ceiling if another bipartisan agreement is not reached.

NAFCU has been steadfast in its efforts against the inclusion of burdensome new IRS reporting requirements for financial institutions (FIs) in the BBBA. The new reporting requirement would require FIs to submit information to the IRS for all accounts with over $600 in inflow or outflow transactions on an annual basis. In addition, the association has urged members to urge Congress to oppose the requirements through various grassroots campaigns

NAFCU also engaged in advocacy against this provision when Congress considered the fiscal year 2022 Budget Resolution. 

Additionally, NAFCU continues to voice its concerns against a proposal included in the BBBA granting 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.”

NAFCU has noted specifically that the provision would not require the SBA to work with lenders as they do with other 7(a) loan products and would inherently allow them to make these new loans on their own. 

The association remains alert on these issues to ensure their exclusion from the BBBA and will continue to advocate against provisions that would further complicate credit union compliance. Stay tuned to NAFCU Today for the latest on the legislation as it moves through Congress.