With less than three weeks left of 2020, much of Washington is engaged in a race to the finish — and that’s likely to have an impact on credit unions.
“There’s certainly potential for a great deal of activity and there’s potential that this week could be a big dud,” Ryan Donovan, chief advocacy officer at the Credit Union National Association, said during a Monday morning press call.
Both the House and Senate are in session this week, and government funding is expected to be a top priority. Funding is currently scheduled to expire on Friday, and it’s unclear whether lawmakers will agree to an appropriations package as part of an omnibus bill or as a continuing resolution, either a short-term deal that gives them time to negotiate or something that kicks the can a few months down the line.
A defense spending bill is also slated to land on President Trump’s desk this week, which he is widely expected to veto. That could lead to a rare moment of bipartisanship, as both chambers may move to override Trump’s veto. Credit union groups lobbied lawmakers throughout the legislative process to ensure the final bill did not include a provision that would grant banks similar access to branching options on military installations that credit unions have access to.
There remains a slim possibility that Congress could agree to additional coronavirus-relief legislation, and while new proposals could still come forward, most observers believe an agreement is unlikely before lawmakers leave town for the holidays.
This is expected to be the final week of the legislative session, though there is a slim possibility the session could extend into next week.
The National Credit Union Administration is also moving quickly to wrap up several key measures for credit unions in a week that is expected to see new board member Kyle Hauptman join the panel. The regulator’s monthly open board meeting has been extended to two days, with the board set to vote Thursday on a final rule on subordinated debt, as well as the reintroduction of a proposal regarding overdraft protection, which was introduced earlier this year but voted down. A second meeting is scheduled for Friday for a vote on the NCUA budget.
With President-elect Joe Biden likely to elevate board member Todd Harper to the chairmanship after his inauguration, many in the industry have suggested the packed agenda reflects NCUA Chairman Rodney Hood’s attempt to get as many of his priorities as possible across the finish line before losing the chairmanship. While the board usually meets on the third Thursday of the month, January’s meeting has been moved up by one week in advance of the inauguration, giving Hood one final chance to drive the agency forward before any possible transition of power.
