As the calendar turned to a new month last week, Washington D.C. entered its favorite time of year – the August Congressional recess. The recess kicks off the Fall election season in earnest, as lawmakers head home to make their case for constituents prior to the November general election.
In total, the United States House of Representatives has only thirteen days in session before the election, all during the month of September. During that time, it will face a looming deadline to finalize a Farm Bill before the current bill expires on September 30. The House will then stand in recess throughout the month of October.
The Senate is similarly positioned with just fifteen working days before the election, calling into question whether it will move on various Presidential nominations, including the nomination of Christy Goldsmith Romero to succeed Marty Gruenberg as Chairman of the FDIC.
Over the next several weeks, IBAT members are encouraged to touch base with their elected officials to emphasize the important issues facing community banks. Lawmakers need to understand the looming potential burden of small business loan application data reporting under Section 1071 of the Dodd-Frank Act, as well as the industry’s concern with cryptocurrency and stable coin legislation, which could further disintermediate deposits from community banks.
“Many elected officials do not understand the cumulative regulatory burden that falls on community banks,” said IBAT President and CEO Christopher Williston. “When IBAT members invite elected leaders to their bank and have them walk around and meet the people who handle audit and compliance responsibilities, lawmakers quickly understand the burden placed upon our banking institutions.”
IBAT will continue to closely monitor must-pass pieces of legislation, including the Farm Bill. We’ll be on the lookout for harmful proposals that may be slipped into legislation, including the National Defense Authorization Act, which will be passed after the election. Please pay close attention to IBAT communications for any pertinent calls to action the weeks ahead.
