Legislative Update with Jay Kruse
by Jay Kruse
Chief Advocacy Officer

Good Morning!


Late Tuesday, Speaker Pelosi (D-CA) and House Democrats released their proposed wish list for the next phase of stimulus legislation entitled the HEROES Act. This $3 trillion, 1,800+ page draft legislation will serve as a starting point and is expected to go through multiple changes before it is officially considered in the House. This proposal is considered part of “Phase IV” of stimulus/relief legislation but there is still a long road ahead.


The Republican-led Senate is also working on their next stimulus proposal behind the scenes, which will likely look much different than this package released by the House. The HEROES Act could receive a vote in the House as early as Friday and is expected to be passed with a party-line vote. We continue to read through this lengthy House proposal, but preliminary analysis has identified both some promising and some questionable provisions. This was expected due to the partisan nature of this proposal, and as with all draft legislation, will eventually require compromise from both parties to negotiate a package that can realistically pass through both the House and Senate, in addition to gaining President Trump’s support.


Notable Positive HEROES Act Provisions for Credit Unions:


  • Appropriates $1 billion for the Community Development Financial Institutions (CDFI) Fund.
  • Clarifies the treatment of 2020 Recovery Rebates made after the date of enactment of this bill to protect them from garnishment or offset.
  • Provides refundable payroll tax credits for qualified pandemic-related employee benefit expenses paid by employers.
  • Multiple amendments to the PPP.

Some Questionable Provisions:


  • Suspension of Negative Credit Reporting during disaster periods.
  • Consumer Debt Collection Moratorium during the pandemic and 120 following the disaster declaration.
  • Small Business Debt Collection Moratorium during the pandemic and 120 following the disaster declaration.

While you might find some of the provisions listed above alarming, please remember this is a very partisan proposal from House Democrats, and you can expect negotiations over Phase IV to be very political from the start. We will continue to work to strip the bad provisions and to ensure the provisions we like get through the House, while at the same time, trying to influence the process in the Senate to do the same. We also hope to see some additional credit union provisions that were absent in the House, introduced in the Senate’s Phase IV proposal.


We will continue to engage with our Dakota's Congressional Delegation throughout the process, and at the appropriate time, if necessary, we will issue an Action Alert to engage our grassroots credit union support to help amplify our message. We are not to that point just yet, but stay tuned!


Have a great week, stay well, and don’t hesitate to contact me with any questions.







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