Advocacy Update

Congress is on recess, but CUNA and the Leagues continue to work on key issues impacting credit unions. 

While Congress is on a two-week recess, CUNA and the Leagues continue to work on several key issues impacting credit unions. CUNA welcomed the National Restaurant Association to Capitol Hill with a message sent to lawmakers last Tuesday, alerting lawmakers to credit union opposition to the Marshall-Durbin-Gooden-Lofgren interchange bill. Messages to every Hill office outlined key questions to ask about interchange during those meetings.
 
Next, the credit union community came together with a joint letter from CUNA, the American Association of Credit Union Leagues, and all state Leagues, in opposition to H.R. 3881 and S. 1838, the Credit Card Competition Act of 2023. The letter pushes back against the big box retailers that are urging Congress to further regulate the credit card routing process. Such new rules are unnecessary and costly to consumers and small financial institutions like credit unions.
 
Adding to the drumbeat of opposition to the interchange Big Box Bill is the grassroots outreach by credit union advocates throughout the country. With nearly 30,000 messages against the interchange bill so far through CUNA and League Action Alerts – we are off to a great start. However, the pressure is on in the U.S. Senate as interchange sponsors look to find more avenues to add this bill language. Please continue to contact your lawmakers to dissuade them from supporting or cosponsoring.
 
The interchange issue also hit the airwaves as CUNA Chief Political Officer Richard Gose joined CUBroadcast last week. The broadcast focused on how the bill will limit card issuers’ income from interchange fees and the subsequent negative impact on access to credit. You can view the podcast here.
 
Finally, the House of Representatives’ Committee on Appropriations Subcommittee on Financial Services and General Government held a markup last week of legislation to fund various agencies under its jurisdiction for fiscal year 2024. Credit unions support the bill’s reforms to the CFPB, specifically replacing its director with a commission as well as changing its funding mechanism by subjecting the Bureau to the annual congressional appropriations process. However, the funding levels in the legislation are below what CUNA had advocated for, particularly for the NCUA's Community Development Revolving Loan Fund and Treasury's Community Development Financial Institutions Fund. 
 
As always, feel free to contact Jeff Olson or Amy Kleinschmit with any advocacy questions or concerns.