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This week: NAFCU monitoring Hill efforts on CU issues
The Senate has a state work period this week, but the House is continuing committee work. In addition to engaging with lawmakers during hearings on issues impacting credit unions, NAFCU's award-winning advocacy is monitoring efforts as Congress and the Biden administration look to advance big proposals in the coming weeks.
After recently unveiling an infrastructure and jobs plan and his fiscal year 2022 discretionary funding proposal, President Joe Biden last week outlined his American Families Plan Act during his joint address to Congress.
The credit union industry could be impacted in several ways by each of the proposals. In the new American Families Plan Act, there is a potential new tax reporting burden on credit unions and banks as the administration looks to shore up unreported and misreported income. NAFCU will continue to analyze the plan and advocate against any provisions that would increase credit unions' compliance and reporting burdens.
The infrastructure plan includes provisions related to affordable housing, supporting underserved communities and rural areas, small business aid, and more. Relatedly, the House Small Business Committee Thursday is set to discuss ways to support job growth through infrastructure investment. Biden's could also make changes to the tax code to help raise revenue; NAFCU will monitor congressional efforts and ensure that lawmakers are informed of the benefits of the credit union tax exemption and the negative impacts it could have on the economy if the tax status were to be changed.
Of note in the FY2022 funding request, Biden is proposing to boost funding for the Community Development Financial Institution (CDFI) Fund and Small Business Administration (SBA) programs, as well as the Financial Crimes Enforcement Network (FinCEN) as it works to implement beneficial ownership reporting provisions. In addition, the House Financial Services Committee has proposed NAFCU-supported funding and set asides for the CDFI Fund and NCUA's Community Development Revolving Loan Fund (CDRLF) that would ensure credit unions have the resources needed to support members.
Some lawmakers have also proposed adding postal banking provisions to the FY2022 funding proposal. NAFCU consistently advocates against postal banking efforts and instead urges Congress to allow all credit unions to add underserved areas to their fields of membership to achieve the goals of such proposals.
NAFCU will continue to engage with administration officials and Congress to ensure credit union priorities are included in these packages and any concerns are addressed.
NAFCU is also watching for any developments with The American Housing and Economic Mobility Act, which was reintroduced recently by Sen. Elizabeth Warren, D-Mass. NAFCU has concerns about a new CRA-lite burden the legislation would impose on some credit unions. The association has an updated analysis of the legislation available to members available here.
Hearings happening on Capitol Hill this week include:
- a House Financial Services subcommittee hearing tomorrow on ensuring housing resilience in the face of climate change;
- a House Homeland Security subcommittee hearing Wednesday on ransomware and other cyber threats;
- Thursday, the House Financial Services Committee is holding another hearing on investment apps and stock trading; and
- Friday, the House Financial Services' Task Force on Artificial Intelligence will meet on using artificial intelligence and algorithms to address racism and racial equity in housing and financial services.
Stay tuned to NAFCU Today for the latest out of Washington.