October 13, 2020

This week: NCUA Board meets; NAFCU keeps pushing for CU relief

Capitol HillWhile the House and Senate remain in their home districts this week, the Senate Judiciary Committee started hearings with Supreme Court justice nominee Amy Coney Barrett yesterday and will continue through Thursday. The Senate could return to Washington before the election to vote on Barrett's nomination; however, the House is not expected to return until after the election.

Off of Capitol Hill, NAFCU will monitor Thursday's NCUA Board meeting, during which the board is set to issue a final rule on corporate credit unions, a proposed rule related to derivatives, and a request for information on its supervisory guidance. The board will also receive a briefing on cybersecurity considerations amid the coronavirus pandemic.

NAFCU Vice President of Legislative Affairs Brad Thaler last week sent a message to member credit unions outlining issues NAFCU continues to advocate on and expects to be addressed after next month's election. They include:

  • Government funding: After passing a continuing resolution to keep the government funded through Dec. 11, Congress is expected to continue spending discussions after the November election. While the House has passed its fiscal year 2021 spending package, the Senate has yet to do so. NAFCU will continue to advocate for full funding for credit union priorities, including the Community Development Financial Institutions (CDFI) Fund and Community Development Revolving Loan Fund (CDRLF), as well as caution against House-passed provisions the association is opposed to, such as a pilot postal banking program.
  • Pandemic relief and stimulus: On coronavirus relief efforts, President Donald Trump last week announced he had instructed administration representatives to stop negotiating with House Speaker Nancy Pelosi, D-Calif., on a package deal until after the election. NAFCU continues to monitor activity on Capitol Hill and possible standalone bills to address certain issues.
  • Paycheck protection program (PPP): The Small Business Administration (SBA) and Treasury Department last week released a simpler forgiveness form for PPP loans under $50,000. While NAFCU President and CEO Dan Berger said this "is a strong step in the right direction" and that NAFCU "appreciate[s] the SBA’s commitment to streamlining the PPP loan forgiveness process," the association continues to urge Congress to pass legislation – specifically the Paycheck Protection Small Business Forgiveness Act, S. 4117, and the House companion, H.R. 7777 – that would continue the PPP and further simplify the forgiveness process.
  • Bank Secrecy Act (BSA)/anti-money laundering (AML) and beneficial ownership reform: NAFCU joined with dozens of other organizations last week to urge leaders of the Senate and House Armed Services Committees to include BSA/AML and beneficial ownership reforms in the fiscal year 2021 National Defense Authorization Act (NDAA).The groups specifically called for the inclusion of the Corporate Transparency Act – included in the House-passed NDAA – which would create a beneficial ownership registry.
  • Defense credit union leases: Another provision of the NDAA NAFCU is engaged on where credit unions have bipartisan support: Rejecting the bank-sought provision – included in the Senate's NDAA but not the House's – that would require the Department of Defense (DoD) to treat banks, including big ones like Wells Fargo and Bank of America, the same as credit unions when it comes to nominal leases on military bases. This provision was also included in the Senate's NDAA last year, but NAFCU successfully kept it from being included in a final version of the bill that resulted from the conference committee.
  • NCUA Board nomination: While Senate consideration of Kyle Hauptman's nomination to serve on the NCUA Board could be impacted by the results of the election, NAFCU believes the chamber could consider it on the floor during the lame duck session.

Also happening this week: