The House Financial Services Committee’s plan to overhaul the Dodd-Frank Act could result in increased fees to financial institutions, including credit unions, the Congressional Budget Act said in a newly released report.
The CBO reported that the House Financial CHOICE Act, H.R. 10, would decrease the federal deficit by $24.1 billion between 2017 and 2027. Republican supporters of the bill have been touting the savings in recent days.
The CBO is the officials scorekeeper for the cost of legislation.
The bill, which is now scheduled to go to the House floor after Memorial Day, would make financial regulators subject to the annual appropriations process. Currently, agencies such as the NCUA, are funded through fees, but draw down funds from the Federal Reserve.
Those fees could increase under the CHOICE Act, CBO said.
“For example, under the bill, the NCUA would assess fees on both federal and state-chartered credit unions insured by the Share Insurance Fund to offset costs associated with changing the agency’s funding structure,” the agency said. “CBO estimates that the incremental cost of the new fees would total about $200 million annually.”
CUNA said that is why the association opposes placing the agency under the annual appropriations process.
“The CBO score affirms our concern with the provision in the CHOICE Act that would bring the NCUA under the appropriations process,” said Ryan Donovan, CUNA’s chief advocacy officer. “Such a measure would impose additional and unnecessary costs on credit unions, which is why we have consistently opposed the provision since it was first introduced as part of the broader bill.”
A NAFCU spokesperson said the association has discussed the issue with the Financial Services Committee. The spokesperson said that committee staff said language would be added to the bill stating that NCUA could only assess credit unions the amount it intends to spend.
Financial Services Committee staff did not immediately respond to a request for comment.
