Capital Corner: September Promising to Be the Busiest and Most Consequential Month of 2023 in Washington

Provided by John McKechnie

Several critical issues are on the clock, and DCUC is on top of all of them. Here’s a grab bag of what we’re watching
closely:

Capitol Hill

• Both the Senate and the House have wrapped up work on their versions of the annual defense bill…but now the fun part begins, as the hard work of reconciling the two versions begins.
• From a credit union perspective, DCUC, in close collaboration with NAFCU and CUNA, once again repelled the (tiresome) banker efforts to get free lease space on military bases. For the tenth time in 10 years. And speaking of keeping bad language out of the must-pass NDAA, DCUC was on the front lines of defending against a last ditch effort to graft the controversial, retailer-backed Credit Card Competition Act onto the bill as it was prepped for a vote on the Senate Floor in late July. More on that bad bill later.
• One late-emerging NDAA amendment did garner DCUC and credit union trade association support: an amendment, offered by Senator Patty Murray (D-WA), that would create a DoD panel on financial readiness. DCUC worked with Senator Murray and others in support of this and are hopeful that amendment eventually becomes law. DCUC has also advocated for a slot on such a DoD commission if it is created.
• Here’s an update on the Credit Card Competition Act (known colloquially as the Durbin Bill, after its initial sponsor): A vigorous battle over credit card interchange fees is being waged on Capitol Hill pitting credit unions and their financial services allies against the merchant lobby. It shows no signs of a let-up, even as Congress returned home in August for a month-long recess. The retailer lobby failed in their effort to slip their bill into the NDAA, but Senators Durbin and Marshall are vowing to pursue other avenues—look for possible mischief in a Continuing Resolution (which is likely needed before September 30 to keep the government funded), or the must-pass Farm Bill, which requires action sometime this fall. DCUC is on high alert.

NCUA

• After skipping an August Board meeting (as is traditional), NCUA figures to ramp up its activities in September. Expect Board action on a FinTech final rule and possible rulemaking on NCUSIF coverage of trust accounts. Regarding Fintechs, congressional and media sources say there are rumors of an internet marketplace company exploring a federal credit union charter. Details are sketchy, although at least one bank lobby group has expressed strong opposition to Senate Banking Committee staff. No word on whether a charter application has been submitted by this group, or if the NCUA Board would be receptive.
• Also, there is continuing buzz from NCUA sources about a beefed-up consumer protection function in the 2024 budget. Chairman Harper has been clear in his focus on enhanced oversight; what isn’t clear is how that focus would translate. More specialized exams and examiners? Closer coordination with CFPB? Stay tuned.
• One more familiar issue keeps popping up: look for NCUA to continue its emphasis on third-party vendor examination authority.

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