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Legislative Update with Jay Kruse by Jay Kruse, Chief Advocacy Officer Good Morning! It was great seeing many of you last week at the SE605 Annual Charity Golf Tournament in Sioux Falls! We were blessed with some great weather and were able to raise over $10,000 once again this year for some great causes. The generosity of our Dakotas credit union professionals and industry partners who help sponsor this great event never cease to amaze me. Also, a big shout out to Joey Rotert, Sioux Falls FCU, and Tim Ingalls, CU Mortgage Direct, for all their hard work and dedication in putting together such a great tournament every year! Don’t miss out on our next credit union charity golf event being sponsored by your Dakota Credit Union Foundation taking place August 26th at Apple Creek Country Club in Bismarck, ND! This event is being held in conjunction with our 2021 Dakota Credit Union Professionals Forum and Nussle Town Hall Meeting. We hope you are all able to join us for some meetings and some fun! Washington DC The Senate is back in-district on recess this week, however the House Financial Service Committee did hold a markup on one bill of interest to credit unions earlier this week. H.R. 3958, the Central Liquidity Facility (CLF) Fairness Act, passed through committee 28-22. This legislation aims to protect credit unions from unexpected liquidity issues by making some changes included in the CARES Act permanent: Increasing the CLF’s borrowing authority to 16 times the capital paid in (up from 12 times), meaning that, for every $1 of capital and surplus, the CLF can now borrow $16. Making it easier for credit unions to join the CLF through their corporate credit union. These enhancements were originally set to expire in December 2020 but were extended through the end of 2021 through the Consolidated Appropriations Act of 2021. Let the Annual Appropriation Process Begin In his budget request for Fiscal Year 2022, President Biden included $320 million for the Community Development Financial Institutions (CDFI) Fund and $2 million for the Community Development Revolving Loan Fund (CDRLF). The CDFI Fund makes capital grants, equity investments and provides technical assistance to CDFIs. The CDRLF funds revolving loan and technical assistance programs aimed to assist credit unions serving low-income communities. CUNA recently wrote to the Senate Appropriations Subcommittee in strong support of the President’s budget requests. This will something we will be clearly advocating for during our upcoming Fall Legislative/Regulatory Hike the Hill in Washington DC taking place in early September. This is just the beginning of the appropriation process which will continue over the next few months. Stay tuned for more details. June Economic Update Released CUNA’s Senior Economist, Jordan van Rijn, just introduced June’s Economic Update video answering a few valuable questions as credit unions attempt to help members rebound from the COVID-19 pandemic, such as: What explains the recent disappointing job creation figures? Will credit union portfolio quality continue to perform well? Should we expect the first quarter jump in earnings to continue? You can check out the June CUNA Economic Update here. As always, don't hesitate to contact me at jkruse@dakcu.org with any questions or comments.
Legislative Update with Jay Kruse
by Jay Kruse, Chief Advocacy Officer
Good Morning!
It was great seeing many of you last week at the SE605 Annual Charity Golf Tournament in Sioux Falls! We were blessed with some great weather and were able to raise over $10,000 once again this year for some great causes. The generosity of our Dakotas credit union professionals and industry partners who help sponsor this great event never cease to amaze me. Also, a big shout out to Joey Rotert, Sioux Falls FCU, and Tim Ingalls, CU Mortgage Direct, for all their hard work and dedication in putting together such a great tournament every year!
Don’t miss out on our next credit union charity golf event being sponsored by your Dakota Credit Union Foundation taking place August 26th at Apple Creek Country Club in Bismarck, ND! This event is being held in conjunction with our 2021 Dakota Credit Union Professionals Forum and Nussle Town Hall Meeting. We hope you are all able to join us for some meetings and some fun!
Washington DC
The Senate is back in-district on recess this week, however the House Financial Service Committee did hold a markup on one bill of interest to credit unions earlier this week. H.R. 3958, the Central Liquidity Facility (CLF) Fairness Act, passed through committee 28-22. This legislation aims to protect credit unions from unexpected liquidity issues by making some changes included in the CARES Act permanent:
Increasing the CLF’s borrowing authority to 16 times the capital paid in (up from 12 times), meaning that, for every $1 of capital and surplus, the CLF can now borrow $16.
Making it easier for credit unions to join the CLF through their corporate credit union. These enhancements were originally set to expire in December 2020 but were extended through the end of 2021 through the Consolidated Appropriations Act of 2021.
Let the Annual Appropriation Process Begin
In his budget request for Fiscal Year 2022, President Biden included $320 million for the Community Development Financial Institutions (CDFI) Fund and $2 million for the Community Development Revolving Loan Fund (CDRLF). The CDFI Fund makes capital grants, equity investments and provides technical assistance to CDFIs. The CDRLF funds revolving loan and technical assistance programs aimed to assist credit unions serving low-income communities.
CUNA recently wrote to the Senate Appropriations Subcommittee in strong support of the President’s budget requests. This will something we will be clearly advocating for during our upcoming Fall Legislative/Regulatory Hike the Hill in Washington DC taking place in early September. This is just the beginning of the appropriation process which will continue over the next few months. Stay tuned for more details.
June Economic Update Released
CUNA’s Senior Economist, Jordan van Rijn, just introduced June’s Economic Update video answering a few valuable questions as credit unions attempt to help members rebound from the COVID-19 pandemic, such as: What explains the recent disappointing job creation figures? Will credit union portfolio quality continue to perform well? Should we expect the first quarter jump in earnings to continue? You can check out the June CUNA Economic Update here.
As always, don't hesitate to contact me at jkruse@dakcu.org with any questions or comments.