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After last week's enactment of the American Rescue Plan Act, Congress this week is set to consider legislation that would extend the paycheck protection program (PPP) by two months. While NAFCU and other financial trade and consumer groups had also called on lawmakers to propose legislation to protect the new round of economic impact payments (EIPs) from garnishment, such a bill is not expected.

The PPP is currently set to expire March 31. Bipartisan bills have been introduced in both the House and Senate to delay the PPP's loan application deadline to May 31 and allow the Small Business Administration (SBA) to continue processing pending applications for 30 days after that date. NAFCU has raised concerns about the amount of loans backlogged due to hold codes and has called on the SBA to clear the codes before the program ends.

Some Americans began receiving their EIPs over the weekend after President Joe Biden signed the relief bill into law Thursday; payments are expected to continue through the month. NAFCU and other groups advocated for Congress to "pass standalone legislation addressing garnishment to ensure that American families will receive these benefits as intended to fulfill our common goal of protecting these payments from garnishment within the practical realities of existing financial institution systems." The groups also urged Treasury Secretary Janet Yellen to support the effort.

NAFCU and industry trade groups have also asked for additional clarity regarding processing electronic and paper check transactions to ensure credit unions and other financial institutions have the resources and guidance needed to efficiently get funds to consumers. A NAFCU Compliance Blog from earlier this year outlined some considerations for credit unions processing EIP checks to help address potential issues.

Hearings happening in Congress this week include:

• a Senate Banking Committee hearing tomorrow to review the state of housing in America;
• a Senate Small Business Committee hearing Wednesday to discuss the effectiveness of the PPP and next steps;
• a House Financial Services Committee hearing Wednesday to explore recent stock trading issues;
• a House Financial Services subcommittee hearing Thursday to discuss data related to diversity, equity, and inclusion efforts; and
• a Senate Banking Committee hearing Thursday to explore the impact climate change risks could have on the financial system.

NAFCU will continue to engage with lawmakers on credit union issues.

Also happening this week:

• the Federal Open Market Committee (FOMC) begins its two-day policy-setting meeting tomorrow;
• NAFCU's Virtual Regulatory Compliance School kicks off tomorrow (stay tuned to NAFCU Today for agenda highlights); and
• the NCUA Board meets Thursday (see what's on the agenda here).