Advocacy Update

​Lawmakers avoid government shutdown; CUs oppose amendment to minibus; Senate Banking Committee passes SAFER Banking Act; and interchange battle continues. 

Lawmakers avoid government shutdown.
Over the weekend, Congress successfully reached an agreement on government funding, averting a government shutdown before funding expired at midnight on Saturday. The continuing resolution (CR) funds the government for 45 days, through November 17, and extends the National Flood Insurance Program (NFIP). The CR did not include the Consumer Credit Card Act (CCA), or any further funding for Ukraine’s war efforts, nor did it provide any funding for additional border security, all of which were sticky points for many lawmakers heading into the weekend.
 
The CUNA-League System will continue to engage lawmakers in the coming weeks to try to work out a deal on longer-term government funding, and continue to fight back against efforts to attach the “big box bailout” legislation to funding proposals.
 
Credit Unions oppose amendment to “minibus.”
CUNA and NAFCU sent a joint letter to Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell, expressing opposition to Senate consideration of Amendment 1285 to H.R. 4366, the legislative vehicle for the “minibus” appropriations bill. The amendment would place an arbitrary interest rate cap on certain consumer credit products offered by credit unions and other financial institutions, and it would impose government price controls by capping the annual percentage rate (APR) of these credit products at 36 percent.
 
Senate Banking Committee passes SAFER Banking Act - Dakota senators split on vote.
The Secure and Fair Enforcement Regulation (SAFER) Banking Act passed out of the Senate Banking, Housing, and Urban Affairs Committee last Wednesday, September 27, by a 14-9 vote. Senator Cramer (ND) voted in favor while Senator Rounds (SD) voted against the markup. The bill would provide a safe harbor for financial institutions and employees serving legal cannabis-based businesses, and is supported by CUNA and Leagues. Lawmakers removed language that credit unions opposed in advance of the vote.

A bipartisan group of senators led by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT), co-wrote the bill which serves as a revamped version of the Secure and Fair Enforcement Banking Act. It is an updated version of the SAFE Banking Act, which was also CUNA and League supported, and re-introduced in both chambers earlier this year. It has passed the House seven times in previous Congresses. The SAFER Banking Act now moves to the House of Representatives.
 
Interchange fight continues on and off the Hill.
Nearly 100,000 credit union advocates have urged senators to oppose efforts on the big box bailout bill led by Senators Roger Marshall (R-KS), and Dick Durbin (D-IL), as well as one by Josh Hawley (R-MO), to cap credit cards’ annual percentage rate at 18 percent. Several other industries are also strongly opposed to this big box bailout bill. Outreach to fight the interchange bill (S. 1838/H.R. 3881) is ongoing. New ads, focused on the extra charges being levied on consumers when using credit cards are being used in and around Capitol Hill during Hike the Hill visits.  
 
Also happening on the Hill this week:

• The Supreme Court is expected to hear oral arguments for the CFSA vs. CFPB case.
• NCUA kicks off its Minority Depository Institutions (MDI) Symposium.
• Credit Unions wrote to the CFPB to express concerns regarding the bureau’s condensed timeframe of its rulemaking to address consumer reporting topics in the Fair Credit Reporting Act (FCRA). In the letter, the trades noted the proposal aims to make complex and sweeping changes to the FCRA. The current timeline does not provide adequate time for small business owners and financial institutions to adequately prepare and offer alternatives and data as the CFPB requests. Additionally, the trades requested the CFPB move the start of the timeline for the Small Business Regulatory Enforcement Fairness Act back two weeks.