WASHINGTON — America’s Credit Unions is urging the Office of Management and Budget to withdraw a proposed rule that would update federal guidance governing financial assistance programs, arguing the changes could undermine the stability and fairness of grant programs relied upon by credit unions and other recipients.
In a comment letter, the trade association said the proposal should be withdrawn in favor of retaining the current regulatory framework, according to America’s Credit Unions.
The organization said the administration’s goals of improving transparency and accountability can be achieved through agency-specific rulemakings authorized under existing statutes or through legislation when additional authority is needed.
How Goals Can be Pursued
“The administration’s oversight goals can be pursued, where authorized, through agency-specific rulemakings under each agency’s program statutes and through legislation where new authority is needed,” the letter states.
According to America’s Credit Unions, the proposed changes would have “direct and significant” effects on programs such as the U.S. Treasury Department’s Community Development Financial Institutions Fund and the National Credit Union Administration’s Community Development Revolving Loan Fund.
The association said it supports the administration’s objectives of increasing transparency and accountability but contended the proposal rests on “uncertain statutory footing” and could create instability for organizations that have successfully managed federal grant funding.
Additional Argument
America’s Credit Unions also argued that the existing regulatory framework already provides agencies with the authority to administer programs under their respective statutes, evaluate awards based on congressional intent, and hold recipients accountable for their stewardship of federal funds.
