Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, announced the victories that the Committee successfully secured in the 2022 omnibus spending bill — legislation that provides Congress with the legal authority needed to spend or obligate U.S. Treasury funds. The legislation includes several priorities of Democratic members of the Financial Services Committee that Congresswoman Waters championed as Chairwoman of the Committee.
Chairwoman Waters worked with both Democratic and Republican members on her committee and several other committees, in both chambers of Congress, to make sure that these important provisions were included in the final Appropriations bills.
Division U – Adjustable Interest Rate (LIBOR) Act – This division, led by Congressman Brad Sherman (D-CA), would establish a legal and regulatory process for certain financial contracts that reference the London Interbank Offered Rate (LIBOR) and do not contain sufficient language that would allow them to continue to function as originally intended after LIBOR is discontinued. This division also directs the Federal Reserve Board to issue regulations regarding the appropriate Secured Overnight Financing Rate (SOFR) or adjusted SOFR replacement reference interest rate that should be used for specific categories of LIBOR-based contracts that fall within the scope of the legislation . This division is based on H.R. 4616, the Adjustable Interest Rate (LIBOR) Act of 2021 sponsored by Representative Brad Sherman (D-CA), which the House passed by a vote of 415-9 on December 8, 2021.
Division T – Credit Union Governance Modernization Act – This division, led by Congressman Ed Perlmutter (D-CO) and Tom Emmer (R-MN), would reform the process governing expulsion of Federal credit union members, providing Federal credit unions the option to either expel a member under the current bylaws, which is based on a vote of credit union members present at a special meeting, or pursuant to a new policy adopted by the National Credit Union Administration (NCUA) Board. The division would also provide new procedures for the expulsion of, and reinstatement of, a member under certain circumstances, while ensuring fairness and due process for the member in question. This division is based on H.R. 2311, the Credit Union Governance Modernization Act sponsored by Representatives Ed Perlmutter (D-CO) and Tom Emmer (R-MN), which the House Financial Services Committee approved by voice vote on November 16, 2021.
Title III of Division HH – CARES Act Testimony – This title would reduce the frequency of testimony that the Treasury Secretary and the Chair of the Federal Reserve must testify before the House Financial Services Committee and the Senate Committee on Banking, Housing, and Urban Affairs regarding the obligations of their respective agencies under the CARES Act from quarterly to semiannually. This title would also terminate the testimony requirement at the end of 2027.
Title I of Division O – Flood Insurance – This title would extend the authorization of the National Flood Insurance Program (NFIP) through September 30, 2022.
