CUNA is actively engaged and strongly supports an amendment to House appropriations legislation that would strike a section of the bill that would place NCUA under the appropriations process. The amendment was offered by Reps. Mark Amodei (R-Nev.) and Pete Aguilar (D-Calif.).
Section 906 of the Department of the Interior, Environment, and Related Agencies Appropriations Act for Fiscal Year 2018 (H.R. 3354) would bring NCUA under the appropriations process.
We oppose Section 906 because it would jeopardize the independence of the federal credit union regulator and unnecessarily comingle credit union resources with taxpayer resources, potentially causing credit union resources to be used to pay for other areas of government,” CUNA President/CEO Jim Nussle wrote to Amodei and Aguilar Thursday in a letter supporting the amendment.
“Maintaining a separate, independent federal credit union regulator and insurer is critically important to the credit union system, and the structural and mission-driven differences between credit unions and banks necessitate such a regulatory scheme: credit unions' not-for-profit structure and their mission to promote thrift and provide access to credit for provident purposes are fundamentally different than other financial services providers,” the letter adds.
Since NCUA is funded by credit unions and their members, not by taxpayers, credit unions and their members remain willing to pay for their own regulatory, provided there is sufficient transparency with respect to the agency’s budget and overhead transfer rate.
CUNA believes that NCUA, particularly under current leadership, has made great progress in increasing transparency.
In the letter, Nussle also noted that subjecting NCUA to the appropriations process could be viewed as a tax, as credit union resources could be appropriated to pay for or offset other government priorities.
“Credit unions, which are tax exempt based on their structure as not-for-profit financial cooperatives and their mission to promote thrift and provide access to credit for provident purposes, are not required to pay for other areas of the federal government nor are taxpayers called on to pay for NCUA operations. There is no compelling reason to change that arrangement.”
Additional information, including a link to the letter, can be found on CUNA’s Removing Barriers Blog.