Week ahead: NCUA, jobs and the State of the Union

February is starting off well for credit unions.

Capitol Hill-flag
Congress is set to take up its third government funding continuing resolution so far this fiscal year. New infrastructure funds need a full FY22 budget in order to begin to flow to states.

President Trump on Friday nominated former NCUA staffer Todd Harper to the final open seat on the NCUA board, a move that garnered praise from current and former board members, trade associations and more.

“NASCUS looks forward to developing a productive working relationship with Todd Harper,” Lucy Ito, president and CEO of the National Association of State Credit Union Supervisors, said in a statement. “If confirmed, we are confident that Mr. Harper will work with NCUA Board Chairman McWatters to strengthen the credit union system by easing credit unions’ regulatory burdens and empowering credit unions with the tools necessary to be competitive in the broader market."

Last week’s jobs report could also be good news for CUs. Economic outlook will lend a hand to credit unions if growth continues. Job growth outperformed Wall Street expectations, showing an increase of 304,000 more jobs than originally expected. This, coupled with the Fed's dovish decision to not raise interest rates, could positively translate toward credit union interests if strong economic outlook is delivered in a year that is bracing itself for a recession.

The president is also scheduled to make his annual State of the Union address Tuesday evening. Not much is known for what lies on the president’s docket, but it’s not anticipated that any financial news will come out, said Jacqueline Ramsay, vice president of media relations and communications at the National Association of Federally-Insured Credit Unions.

“We’ll certainly keep an eye out,” she noted.

“While we’re not exactly sure what President Trump will call for in the President's address, we’ve been working hard,” Eli Joseph, deputy chief advocacy officer at the Credit Union National Association, said on a conference call.

Joseph continued that the trade was “working with lawmakers on both ends of Pennsylvania Avenue” to highlight support for credit union interests.

Both the House and Senate are in session this week and are continuing negotiations to fund the federal government through Sept. 30. The current continuing resolution funds the government until Feb. 15., and if an agreement isn’t reached by then, the government will be subject to another shutdown.

Among the items on the legislative docket this week of interest to credit unions, the Senate Finance committee will hold a hearing to consider several nominations, including assistant secretaries to the treasury and commerce, and more. It is unclear whether the two pending nominations to the NCUA board will be considered.
The Senate Judiciary Committee will also hold a hearing on Thursday to consider William Barr’s nomination for attorney general.

Lastly, robocallers may soon meet their match – the U.S. Supreme Court. The court recently received a request to review a lawsuit related to the Telephone Consumer Protection Act and autodialers. Both CUNA and NAFCU have worked with the Federal Communications Commission to attempt to clarify language and understand the TCPA's flexibility so credit unions can better understand how to contact members without any concerns of breaking the law.

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