As the United States Senate is poised to pass an infrastructure package this week, I could not help but have some commentary. This is a huge piece of legislation, that not only is important for some provisions and investments it could contain, but it is also a key agenda item for the Biden Administration. Once accomplished, the path is cleared for other legislative priorities- many of which could have a great impact on credit unions- like possible taxation.
As is stands, the number one method listed to pay for this trillion-dollar bill is to collect unpaid taxes. You may have seen that your League is opposing the new reporting requirements for financial institutions, including credit unions. Anytime a large bill is moving through Congress or the Virginia General Assembly, we need to remain vigilant to make sure legislation that could be harmful to credit unions is not included. Even though this bill is a bipartisan compromise package, it still has a long way to go before its passage. From my perspective, the best defense is always a great offense. And that means focusing on priorities important to credit unions. As an example- If you have not had an opportunity to weigh in with your member of Congress on Interchange- please do so! There is no time like the present.
Below is a blurb from the Wall Street Journal on the infrastructure package as well as a few of the thoughts I had as I read it:
WSJ: One trillion dollars for infrastructure. Much of the bipartisan infrastructure legislation is directed toward roads and bridges: pouring billions of dollars toward an expansive backlog of needed repairs across the country and shoring up the nation’s highways and infrastructure to withstand the toll of climate change.
Me: Are repairs going to cause more traffic down the I-95 corridor?
WSJ: The legislation, which includes about $110 billion in new federal funding for roads, bridges, and other projects, also ensures the continuation of existing transportation programs, while calling for increased attention to safety and climate provisions.
Me: Is this going to mean new bridges to get to get to the beach faster?
WSJ: The measure increases funding for programs intended to provide safe commutes for pedestrians and creates a $350 million pilot program for projects that reduce collisions between vehicles and wildlife. The legislation also formally establishes a federal program designed to encourage children to walk or bike to school.
Me: Does it include a mandate that 14-year-old boys actually wear coats and gloves or even long pants when walking to school in wintertime?
WSJ: The program authorizes the largest amount of funding for surface transportation programs, according to a summary provided by Democrats on the Environment and Public Works Committee. But transportation experts say the funding is just a fraction of what is needed to address the nation’s backlog of needed repairs, with the latest estimate from the American Society of Civil Engineers estimating a $786 billion backlog for roads and bridges alone.
Me: Instead of eccentric rich guys shooting themselves into space, can all the billionaires help out here?
WSJ: While President Biden had called for $20 billion for projects designed to help reconnect Black neighborhoods and communities of color splintered or disadvantaged by past construction, the proposed legislation includes just $1 billion, half of which is new federal funding, over five years for the program. The legislation also creates a new $2 billion grant program to expand roads, bridges, and other surface transportation projects in rural areas.
Me: Will the House of Representatives put the brakes on the legislation if it does not go far enough?
While my commentary is mostly in jest, the fact is that every member of Congress is self-interested and looks at issues through the lens of their District and constituents. Hard infrastructure proposals often support and strengthen economic development, which is generally good for credit unions, but we must remain aware of any unintended negative consequences on the industry. For me, I am always looking for opportunities for credit unions to demonstrate all of the amazing work you do for your communities. I am very proud of the good work Virginia credit unions do in doing just that. Each year, your League and the Credit Union National Association sponsor four awards to recognize credit unions for their work in financial education, community service and outreach, and excellence in member service. This year, 11 of you won at least one award and many of you are going to the national competition.
Congratulations to all of this year’s winners and congratulations to all the work that your credit unions do every day. There is nothing I enjoy more than bragging about how fantastic our member credit unions are!
Sincerely,
Carrie Hunt
President/CEO
P.S. How do you Credit Union? I would love to hear from you. Always feel free to shoot me a note or call.
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