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NAFCU's award-winning advocacy team continues to be engaged on Capitol Hill as lawmakers and the Biden administration begin working on priorities and additional coronavirus relief. NAFCU President and CEO Dan Berger last week sent a letter to President Joe Biden highlighting the credit union difference and industry priorities, and the association followed up with a message to Congress to ensure new and returning lawmakers are aware of the industry's mission.

In the message to Congress, NAFCU Vice President of Legislative Affairs Brad Thaler touted the good work credit unions do in their communities, including amid the global coronavirus pandemic.

"Credit unions are keenly aware of the hardships their members are facing due to the COVID-19 pandemic and are working around the clock to proactively assist them," Thaler wrote, detailing efforts to ensure staff and members' health, safety, and financial stability. "…Credit unions also stepped up last year to help many smaller businesses get access to needed capital through the Paycheck Protection Program (PPP) when other lenders focused on larger loans. The average size of a credit union PPP loan last year was around $50,000, a lot less than other lenders."

Thaler also highlighted the industry's impact on the economy, noting from a NAFCU study that "the value that credit unions provide to the greater economy totals roughly $16 billion a year, or $159 billion over 10 years." He also urged the 117th Congress to protect the credit union tax exemption.

"Eliminating the credit union tax exemption would result in the loss of 900,000 jobs over the next decade, a shrinking of the GDP, and a net loss of revenue to the federal government," he wrote. "…Any effort to strip credit unions of their federal tax exemption will have a drastic and immediate negative impact on credit unions and their 123 million member-owners who will ultimately bear the cost of any new tax imposed on credit unions."

While the Senate has yet to finalize a power-sharing agreement for its 50-50 split – which will determine rules and committee assignments – House committees are starting to hold organizational meetings. In addition, House Speaker Nancy Pelosi, D-Calif., today plans to send the Articles of Impeachment for former President Donald Trump to the Senate, though the Senate has not yet set a timeline for its trial.

House Financial Services Committee Chairwoman Maxine Waters, D-Calif., last week announced the Democratic members who will serve on the committee. Of note, Reps. Ritchie Torres, D-N.Y., Nikema Williams, D-Ga., and Jake Auchincloss, D-Mass., are set to join the committee.

Senate committees are moving forward with hearings on Biden's nominations to key cabinet and department leadership positions. The Senate today is expected to vote on Janet Yellen’s nomination to serve as Treasury Secretary following her hearing and advancement out of the Senate Finance Committee last week.

Also happening this week, the Federal Open Market Committee tomorrow will begin its two-day policy setting meeting. Stay tuned to NAFCU Today for economic insights following the meeting. Yesterday, the NCUA's streamlined process for qualified low-income, federally-insured credit unions to apply to become a Community Development Financial Institution (CDFI) opened.