WASHINGTON -- The Senate's Democratic leadership has unexpectedly delayed consideration of a bill that would allow credit unions to expand their member business lending, putting off a vote on the controversial measure for what could be several months.
The measure had been expected to come to a vote in the Senate as early as this month, and lobbyists from both credit unions and banks have been lobbying furiously to attract votes. But a spokesman for Democratic Sen. Charles Schumer told American Banker, sister publication of the Credit Union Journal, today that the vote will not happen until at least the second half of the year.
CUNA President Bill Cheney said this afternoon despite the delay he fully expects the Senate to vote on the bill. “If the banks want to go to sleep on this legislation, that’s fine with us,” said Cheney. “The fact is, however, Senate leadership remains committed to a floor vote on this bill, a promise Sen. Schumer reiterated again today. “
Schumer, who is a member of the Senate Democratic leadership team and a co-sponsor of the credit union bill, initially revealed the delay Friday in a private meeting with the New York Bankers Association.
"The point that he made is that it's not likely coming up in the next several weeks, as in May or even June," Schumer spokesman Brian Fallon said.
Fallon cited a busy Senate schedule, including postal reform legislation and a cyber-security bill, in explaining the delay.
"The Senator acknowledged that the bill was not likely to come up in the immediate term because of the Senate's crowded agenda. But he continues to support the legislation and expects it will be voted on in the coming months," Fallon added in a follow-up email.
The bill would raise the cap on credit union member business lending from 12.25% of assets to 27.5%.
Although the bill may still pass the Senate this year, any delay in its consideration benefits bankers.
If the Senate does not vote until July at the earliest, lawmakers are only scheduled to be in session for four weeks before adjourning for the August recess. Given that it's a presidential election year, it becomes increasingly unlikely that the House and Senate will enact controversial legislation the closer the calendar gets to November.
