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While the House has a district work period this week, the Senate will be in session as it is set to begin impeachment trial proceedings today, which will impact its normal business schedule. NAFCU will also attend Thursday's NCUA Board meeting, during which the agency is expected to issue proposals for subordinated debt and credit union-bank merger processes.

Before the House members left town last week, a couple of bills of note were introduced. After working with NAFCU, Rep. Tulsi Gabbard, D-Hawaii, introduced H.R. 5612 – the Small Business and Community Investments Expansion Act of 2020 – which would allow credit unions under $1 billion in assets greater access to Federal Home Loan Bank (FHLB) funding for community development, small business, and agriculture-related activities. Last week also saw the introduction of H.R. 5617 – the Taxi Medallion Loan Forgiveness Debt Relief Act of 2020 – by Rep. Greg Meeks, D-N.Y., which would allow consumers to avoid paying taxes on taxi medallion debt that is forgiven, styled on a similar tax break for mortgage debt forgiven.

Credit unions are encouraged to join NAFCU's advocacy to tout industry priorities to lawmakers while they're in their home districts. The association has been hard at work on Capitol Hill educating Congress, administration officials, and regulators on the issues credit unions would like addressed this year. Learn more about the 2020 priorities and use NAFCU's Grassroots Action Center to find contact information and background on key issues.

On impeachment, the Senate is set to hold opening arguments of the impeachment trial today. Once the trial officially begins, regular business in the Senate will essentially come to a halt as all senators must attend the trial daily in the Senate chamber while it is ongoing – six days a week. The length of the trial is unknown, but the administration believes it could take less than two weeks. NAFCU will monitor the proceedings and any impact on credit union-related legislation and hearings. Learn more about the impeachment process.

The NCUA Board meeting agenda for Thursday – slated to begin at 10 a.m. Eastern – includes two proposed rules for:

• Subordinated debt: This was included on the NCUA's fall rulemaking agenda. NAFCU has long supported subordinated debt as a capital option for all credit unions, as "the ability to issue subordinated debt would provide important relief by permitting more efficient capital planning and could ease the transition to full compliance with [risk-based capital]." The NCUA Board last month approved of a final rule to delay its risk-based capital rule to 2022; NAFCU has urged the NCUA to consider various capital issues as it reviews the RBC standard.
• Credit union-bank mergers: As bank lobbyists have spread misinformation about recent credit union acquisitions of banks, NCUA Chairman Rodney Hood indicated the agency would propose a rule to provide guidance on the process. NAFCU has worked to educate lawmakers, administration officials, and the public on the facts of these mergers.

Also during Thursday's meeting, board members will review the agency's 2020 annual performance plan, receive a briefing on the civil money penalty statutory inflation adjustment, and discuss the federal credit union loan interest rate ceiling. The current interest rate ceiling stands at a fixed 18 percent and is set to expire in March. NAFCU has encouraged the board to move forward with a variable interest rate.

NAFCU is also offering three webinars this week:

• Today's webinar is on the role information technology plays at credit unions and how it can support an institution's success.
• Tomorrow, a free webinar – registration is required – provides insights into the benefits of NAFCU membership, including an in-depth look at the association's most popular services and trainings.
• Thursday's webinar will review best practices for reducing third-party risks and help credit unions more effectively manage vendors.