Advocacy Update

Stop the Big Box Bill – It’s time to contact Congress again as the interchange bill may be attached to “must pass” legislation. 

Action Alert!
It’s time for credit union advocates to weigh in once again with federal lawmakers on interchange, as efforts by Senators Marshall and Durbin to add interchange language heat up in the U.S. Senate.
 
Senator Roger Marshall (R-Kan.) is attempting to attach the Big Box interchange bill to a draft package to fund the federal government past September 30. Marshall says he will oppose all legislation on the chamber floor that does not include the interchange bill language. It's anticipated he will attempt to attach the interchange bill language to future bills. Interchange bill co-sponsors Sens. Dick Durbin, D-Ill., Peter Welch, D-Vt., and Marshall spoke on the senate floor urging support for their Box interchange bill last week.
 
An action alert from CUNA and Leagues calls on credit unions to contact their senators to oppose Senator Marshall’s efforts. Use CUNA’s Grassroots Action Center to take action today.
 
Deadline Looms for Flood Insurance Program Extension.
Credit union members purchasing a home might not be able to close the deal if the National Flood Insurance Program (NFIP) authority isn’t addressed by month’s end. A CUNA letter to leaders in both the Senate and the House of Representatives urges them to reauthorize the NFIP to issue new coverage for home mortgage loans.
 
The authority of the NFIP expires on September 30, the same day the federal government's spending authority ends. Without reauthorization, credit union members who are closing on homes with a mortgage that requires NFIP coverage will be unable to finalize the transaction. This would not be a simple inconvenience as it will imperil many transactions and have a ripple effect throughout the market.
 
In recent years, the authority of the NFIP has been tied to government funding legislation. If there is a government shutdown or if staff inadvertently fails to include an NFIP reauthorization provision in a continuing resolution (which has happened before), the NFIP loses the authority to issue new coverage in flood or other disaster-prone areas.
 
Central Bank Digital Currency Hearing.
The creation of a central bank digital currency (CBDC) would represent a fundamental transformation of banking and payments and poses serious risks to consumers and the financial system. CUNA submitted a letter regarding a Congressional hearing entitled, “Digital Dollar Dilemma: The Implications of a Central Bank Digital Currency and Private Sector Alternatives.”

In the letter, CUNA outlined concerns, explaining that the creation of a CBDC deserves serious and exacting consideration. Those considerations include a focused enunciation of the issues Congress and the Federal Reserve would intend to solve through a CBDC that are singular and unique to the digital currency, novel and not duplicative of current innovations in the marketplace, and that do not worsen the provision of financial services for consumers or credit unions. The House Committee on Financial Services' Subcommittee on Digital Assets, Financial Technology and Inclusion held the hearing.

In other news.
This week, the House of Representatives will consider H.R. 1130, the Unlocking our Domestic LNG Potential Act of 2023; and H. Res. 684, a resolution “Condemning the actions of Governor of New Mexico, Michelle Lujan Grisham, for subverting the Second Amendment to the Constitution and depriving the citizens of New Mexico of their right to bear arms.” The Senate will also resume consideration of H.R. 4366, the legislative vehicle for the appropriations minibus legislation.
 
Please contact Jeff Olson or Amy Kleinschmit with any advocacy questions or concerns.