Little Movement on Deficit Deal, Yet

Deficit Negotiations
Talks of a deal on raising the debt ceiling continue to dominate Congress however it appears that they are closer on a deal that both Republicans and Democrats can support.

President Obama recently endorsed a plan, which would both cut spending and increase revenue, from a group of six senators. However, House Republicans remain unconvinced and are pursuing alternative solutions. A short term solution, which would raise the borrowing ceiling just a little bit, is being floated as officials try to reach an agreement.

As negotiations have been underway, NWCUA staff have been checking in with our NW delegation to ensure that they are keeping a close eye on any tax expenditures coming up for discussion, in particular the credit union tax exemption.

While staff has not heard specifically that the credit union tax exemption is on the table, last minute negotiations can bring up any number of issues and to be complacent would be a big mistake. Thus far, friends from both sides of the aisle have volunteered to serve as credit unions’ eyes and ears and will let staff know immediately if anything concerning comes up.

On Friday, the House Financial Services Committee released their schedule for the remainder of July. The highest profile hearing will take place at 10 a.m. ET on Thursday, July 28, when U.S. Treasury Secretary Timothy Geithner delivers the first yearly Financial Stability Oversight Council report and covers the status of the international financial system. That hearing will take place before the full House Financial Services Committee at 9:30 a.m. ET.

The status of the Federal Insurance Office will be covered during an insurance, housing, and community opportunity subcommittee hearing later that day.

The financial institutions and consumer credit subcommittee will discuss the rent-to-own industry at 10:00 a.m. EST on Tuesday, July 26, and the domestic and monetary policy subcommittee will follow with a 2:00 p.m. EST hearing monetary policy’s impact on the economy.

The relationship between the health of the U.S. housing finance system and global financial stability will be examined during a Wednesday, July 27 morning hearing before the international and monetary policy subcommittee. The oversight and investigations subcommittee has set a hearing on credit rating agencies for later that day.


Questions? Contact a member of the Association’s Legislative Affairs team:

Jennifer Wagner, Director of Legislative Advocacy
Mark Minickiello
, Vice President, Legislative Affairs
Stacy Augustine
, Senior Vice President & General Counsel

Posted in Advocacy News, Compliance News, Federal.