WASHINGTON–The 119th Congress has returned to town for two months, and credit unions are focused on a number of issues.
For credit unions and other constituencies, the concern revolve around how members of Congress might act during the lame duck session. With many members having been swept from office in the mid-terms, it’s not known how they might vote now that they don’t have to worry about re-election. Others who are retiring or otherwise not expected to run again may seek to leave a “legacy,” such as passage of the credit union-opposed Credit Card Membership Act (the two primary sponsors, Sens. Roger Marshall (R-KS) and Dick Durbin (D-IL) will not be part of the 120th Congress.
A primary point of attention is the FY2027 National Defense Authorization Act (NDAA). Given its must-pass status, it has traditionally been a carrying horse for other smaller bills, including the credit card legislation.
America’s Credit Unions said both chambers are expected to begin work this week on at least a continuing resolution to fund the government into next year. The Senate is also expected to work through their list of nominations, several committees are expected to conduct nominations hearings this week, America’s Credit Unions stated, adding that nominations awaiting a floor vote include CFPB Director nominee Brian Johnson, who is still waiting for a date on their confirmation vote.
Bills With CU Support
As the CU Daily has reported, the Defense Credit Union Council is advocating for Congress to include as part of the NDAA:
- Veterans Member Business Lending (VMBL), which would provide credit unions with greater lending flexibility to support veteran-owned businesses and entrepreneurs without having those loans count against the member business lending cap.
- Central Liquidity Facility (CLF) Reform, which would permanently strengthening the CLF to ensure credit unions have access to a reliable source of liquidity during periods of financial stress, including through the Padilla-Cramer CLF Enhancement legislation.
- Loan Maturity Reform, which aims to modernize federal credit union loan maturity limits to provide greater flexibility in meeting members’ borrowing needs.
As the CU Daily reported here, with another federal funding deadline approaching on Dec. 11, DCUC is calling on Congress to ensure uninterrupted pay for all military personnel, including members of the Coast Guard and eligible National Guard and Reserve personnel.
Opposition to So-Called Commissary Bill
The Defense Council is further urging Senate leadership to keep a commissary interchange amendment out of the FY2027 NDAA.
“The provision, which would study interchange rates at military exchanges and commissaries, could create a pathway for broader payment-routing mandates and revive efforts associated with the Credit Card Competition Act (CCCA),” noted DCUC, which said it continues to oppose because of “their potential consequences for payment security, fraud prevention, financial institutions, and military families’ access to reliable credit and payment services.”
Congressional Activity and Legislation to Watch
DCUC said it is also monitoring several measures scheduled for House consideration this week that are relevant to veterans, military communities, and credit unions, including:
- H.R. 8552, Veterans’ Compensation Cost-of-Living Adjustment: Addressing compensation adjustments for veterans.
- H.R. 10375, SBA 504 Modernization: Updating the Small Business Administration’s 504 loan program to support small business financing.
The NCUA Budget
On the regulatory front, DCUC said it is reviewing NCUA’s proposed 2027–2028 budget and preparing comments ahead of the Nov. 30 deadline. A public budget hearing is scheduled for Nov. 17.
“DCUC believes the agency should continue identifying opportunities to reduce unnecessary administrative expenses, eliminate duplication, and prioritize investments in technology, cybersecurity, and artificial intelligence,” the organization said. “With reduced staffing and a more targeted, risk-based examination approach, DCUC believes there are opportunities to reassess travel and other administrative costs while ensuring the agency maintains the resources necessary to protect the safety and soundness of the credit union system.”
DCUC Chief Advocacy Officer Jason Stverak said DCUC is not advocating for fewer in-person examinations or reductions in the resources necessary for effective supervision. Any reductions in agency staffing should also prompt a corresponding review of associated travel and administrative expenses.
Third-Party Risk Guidance and Regulatory Priorities
DCUC is also reviewing the NCUA’s proposed third-party risk management guidance ahead of the November 16 comment deadline, and is seeking practical, workable expectations that account for differences in credit union size, complexity, and risk exposure.
