Capital Coronavirus Crisis Pushing Credit Union Priorities Off the Table

As the coronavirus crisis hits the nation’s capital in a very personal way, credit union priorities — ranging from extension of Central Liquidity Facility rules to loan forgiveness for the smallest Paycheck Protection Program loans — have been placed on the back burner.

It also means that any new economic stimulus legislation faces an uncertain future.

And that’s not to mention the confirmation of Kyle Hauptman to serve on the NCUA board, a delay that likely means credit unions have not seen the last of board member J. Mark McWatters.

As the world knows by now, President Trump has contracted COVID-19, as have at least three Republican senators, Thom Tillis of North Carolina, Mike Lee of Utah and Ron Johnson of Wisconsin.

The announcement that the three senators have contracted the virus led Senate Majority Leader Mitch McConnell (R-Ky.) to cancel Senate sessions for the next two weeks.

That announcement meant the Senate will not be able to soon vote on the confirmation of Kyle Hauptman to replace McWatters on the NCUA board. That nomination has languished on the Senate calendar since August.

The NCUA board is scheduled to meet on Oct. 15 — meaning McWatters will serve on the board for at least another month. For the record, McWatters delivered his farewell remarks at the July NCUA board meeting.

The Hauptman confirmation delay is in part due to a tight Senate schedule, according to Brad Thaler, NAFCU’s vice president of legislative affairs. He noted, however, that with Democrats objecting to how McConnell is handling the nomination of Supreme Court nominee Amy Coney Barrett, Democrats could object to confirming Hauptman without taking up valuable floor time.

If Hauptman is not confirmed by the end of the year, his nomination will expire, and the new president will be able to fill the seat. If Democratic nominee Joe Biden is elected and the seat is still open, he could nominate a Democrat and give his party the majority on the board.

And so, Hauptman’s confirmation may likely be a priority for the Republican-controlled Senate, if not before the election, then during a lame duck session afterward.

The coronavirus outbreak has also created an uncertain future for the next round of coronavirus stimulus legislation.

CUNA Chief Advocacy Officer Ryan Donovan noted Monday morning that during the weekend, Trump had expressed hope that another stimulus bills can be agreed upon.

House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin have been haggling over the contents of that legislation.

Donovan said CUNA continues to push for its priorities for the next bill.

He said CUNA wants provisions of earlier legislation dealing with the Central Liquidity Facility and Troubled Debt Restructuring — set to expire — extended.

CUNA, NAFCU and other financial services trade groups also are pushing for automatic loan forgiveness for Paycheck Protection Program loans under $150,000 and for liability protection from coronavirus-related lawsuits that could be filed as a result of credit unions opening amid the pandemic.

The loan forgiveness process may be a high priority, since businesses will have to apply for forgiveness.

“That’s a very timely issue,” Thaler said. “It would have an immediate impact. It’s a concept that has bipartisan support.”