Advocacy Update

The clock is ticking on a government shutdown. Plus, countering interchange claims on Capitol Hill; and the SAFER Banking Act is ready for markup in committee. 

The clock is ticking…
While the path to avert a government shutdown remains uncertain, the House is preparing for potential votes on four issue-specific spending bills this week. Senate Majority Leader Chuck Schumer, D-N.Y., took procedural steps to try and move a bill that could be used as a short-term continuing resolution that would provide Congress more time to pass full funding bills, though several House members have expressed opposition to that approach.
CUNA has prepared a handout to help credit unions and members understand the situation and the implications. As the situation progresses, rest assured you can count on CUNA and your Dakota Credit Union Association to keep you apprised of the latest developments and actions.

Countering the interchange claims on Capitol Hill.
In the Senate, several lawmakers have filed amendments to the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, which has been proposed as a “minibus.” Among those holding up a vote on the package are Sens. Roger Marshall (R-KS), and Dick Durbin (D-IL), who want their big box bailout attached to the bill. We continue to urge senators to oppose their effort, as well as one by Sen. Josh Hawley (R-MO), to cap credit cards’ annual percentage rate at 18 percent.

The system works for regular consumers and Main Street businesses, who depend on the safety and security of the credit card system to both purchase and sell items using a credit card. These changes would leave consumers vulnerable and small businesses struggling, just so big-box bullies get a bigger piece of the pie.

Retailers really have no skin in the game when it comes to the interchange marketplace. Credit unions foot the bill for every instance of merchant fraud, make their members whole, and bear the cost of re-issuing cards when retailer breaches occur.

Happening this week in the Senate:

• Senate Banking Committee Wednesday will hold a markup on the Secure and Fair Enforcement Regulation (SAFER) Banking Act. This bill would provide a safe harbor for financial institutions in serving cannabis-related businesses in states where it is legal. The SAFER Banking Act is intended to bring consistency and common sense to federal law in the area of banking regulation where it intersects with legal cannabis businesses.

• The CUNA League system has consistently called on lawmakers to provide credit unions with legal clarity and certainty for serving marijuana-related businesses in states that have legalized marijuana. Senator Cramer (ND) has been instrumental in the markup process and keeping credit unions in the mix during negotiations.
• The Senate Banking Subcommittee will also hold a hearing Wednesday to examine the state of flood insurance in America. The National Flood Insurance Program (NFIP) is one that would be impacted by a government shutdown.

​Also this week, the House of Representatives considers the following: 

• H.R. 4365, the Department of Defense Appropriations Act
• H.R. 4367, the Department of Homeland Security Appropriations Act
• H.R. 4368, the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act
• H.R. 4665, the Department of State, Foreign Operations, and Related Programs Appropriations Act
• House Small Business Committee holds a hearing Wednesday on ways to recoup stolen pandemic loan funds;
• House Oversight and Accountability Committee holds a joint hearing Wednesday on combating ransomware attacks.