NAFCU Journal September October 2021

20 THE NAFCU JOURNAL September–October 2021 The NAFCU staff and legislative com- mittee constantly monitor proposed legislation and educate lawmakers on the potential effects the bills might have on the industry, individual credit unions, and their members. While NAFCU has five overall advocacy priorities for 2021 [see page 21], there are specific issues in each area that are especially significant to credit unions in 2021: Credit Union Tax Exemption “Congress is looking at some major bills, such as for infrastructure, that propose to spend between one and six trillion dollars,” says Brad Thaler, vice president of legislative affairs for NAFCU. “Our con- cern is how the government plans to pay for this new spending.” While there has been discussion about taxing corpora- tions or some individuals at higher rates to cover the costs, there has not been a direct proposal to eliminate the credit union tax exemptions, he says. “However, we have to educate lawmakers about the value of the credit union tax exemptions to the credit unions, their members, and the economy at large,” he says. “There are still a lot of unknowns that can be added to any of these bills, so we continue to monitor proposals and educate legisla- tors and their staffs.” Interchange Fees “This is an ongoing battle between retailers and financial institutions with retailers pushing for more regulation of interchange fees for credit and debit card transactions, and the financial industry fighting back against this interference in a free-market system and pushing for more data security for merchants,” explains Thaler. “The retailers have stepped up their efforts on the Hill to try to extend new limitations to credit cards. We’ve been pushing back and pointing out that credit card transactions are essentially loans that enable consumers to purchase something from the retailer that they might not be able to if they had to pay cash.” The combi- nation of liability as well as enhanced secu- rity for financial transactions translates to more expense for the financial institution that regulated fees and stricter caps would not cover, he adds. Regulatory Relief During the pandemic, it became appar- ent that credit unions proved to be valuable partners to small businesses as well as individual members. “We want to meet new members’ needs that are com- ing as we transition to a post-pandemic economy and support new small business members or other previously underserved members,” says Thaler. “We are request- ing regulatory relief and modernization of the Federal Credit Union Act.” These requests include guidance and relief from the Current Expected Credit Loss (CECL) standard, modernization of outdated governance provisions, provisions offering greater ability to make small business loans and increased ability of all credit unions to add underserved areas to their field of membership. Fintech “We are very interested in digital services for our members and partner with finan- cial technology (fintech) companies to provide those services,” says Lisa A. Schle- huber, CEO at Elements Financial and chair of the NAFCU legislative committee. “Our concern is that some of these fintech Reference 1 I’m Just a Bill. Schoolhouse Rock! March 27, 1976. https://www.youtube.com/watch?v=FFroMQlKiag We want to meet new members’ needs that are coming as we transition to a post-pandemic economy and support new small business members or other previously underserved members. BRAD THALER, VICE PRESIDENT OF LEGISLATIVE AFFAIRS FOR NAFCU We need real examples and accurate data on the value proposition or cost of each proposal to make our case. I believe that lawmakers intentions are good but they don’t always understand the ramifications of their proposals on actual business. LISA A. SCHLEHUBER, CEO AT ELEMENTS FINANCIAL AND CHAIR OF THE NAFCU LEGISLATIVE COMMITTEE