CUNA wrote to House leadership Wednesday, urging an affirmative vote on an amendment that would strike language bringing NCUA under the appropriations process from a House appropriations bill (H.R. 3354). Section 906 of Division D of H.R. 3354 would place NCUA under appropriations, but the amendment from Reps. Mark Amodei (R-Nev.) and Pete Aguilar (D-Calif.) would strike Section 906.
“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,” wrote CUNA President/CEO Jim Nussle.
“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.”
Nussle goes on to point out that NCUA is funded by credit unions and their members, not by taxpayers. Should NCUA be placed under appropriations, those funds could be used to pay for or offset other government costs.
“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,” the letter reads.
The House is expected to vote on the Amodei-Aguilar amendment Thursday, and Nussle continues to urge credit unions to contact their legislator to support the amendment.
Stakeholders can use CUNA’s Grassroots Action Center to contact their representative.