House to Vote on Short-Term NFIP Extension, CU Board Meeting Bill
Learn why a bill on how often credit union boards must meet is to be considered in the House and how a potential government shutdown will effect the NCUA.
Legislation on how often credit union boards must meet to be considered in the House, and how will a potential shutdown impact the NCUA?
As members of Congress prepare to leave Washington to campaign, the House and Senate will have to enact a Continuing Resolution (CR) to keep much of the federal government funded past Friday—the end of the fiscal year.
And as usual, that CR is certain to contain an extension of the National Flood Insurance Program (NFIP).
Congressional appropriators late Monday released the text of a CR that will keep much of the federal government funded through Dec. 16—meaning Congress would have to hold a lame duck session after the November election.
The CR also would extend the authorization for the NFIP through that date.
How a Shutdown Could Impact Credit Unions
The NCUA is funded through fees paid by credit unions, so its funding—with the exception of the Community Development Revolving Loan Fund program—is not subject to annual appropriations. That means the agency would continue to operate even if Congress failed to pass a CR and much of the federal shut down.
The CFPB is funded by the Federal Reserve, not through the appropriations process. Therefore, it too would remain open even if Congress does not enact a CR.
Then, there’s the NFIP. Despite the efforts of lawmakers on both sides of the Capitol, Congress has been unable to pass a comprehensive reauthorization plan.
As a result, since 2017, the NFIP has been funded in Continuing Resolutions and omnibus spending bills. It even has lapsed a few times.
Credit Union Board Meeting Bill
Also, this week, the House is scheduled to consider H.R. 6889, legislation that would allow well-managed federal credit unions to meet six times a year rather than every month.
Under the bill, introduced by Rep. Juan Vargas, D-Calif., credit unions with a composite score of 4 or 5 under the CAMELS system would be required to meet monthly, as would newly formed credit unions. Other credit unions’ boards could meet six times a year.
The bill is scheduled to be considered under suspension of the House rules. That means it must have two-thirds of the House members voting for it to be passed.
A bipartisan group of senators has introduced companion legislation in the Senate, but it has not been scheduled for a vote.