STATE GOVERNMENT RELATIONS
Stutzman bill would require feds to adhere to 5-point criteria before approving emergency fund
Rep. Marlin Stutzman, R-Ind., is set to introduce legislation that would establish guardrails for last-minute funding intended for national emergencies, such as natural disasters, the COVID-19 pandemic or other spending aimed at filling gaps in the appropriations process.
Governor says 'new board' coming for IEDC
An overhaul could soon be coming to the Indiana Economic Development Corp. board of directors. "I'll be putting together a new board for the IEDC, and I've got a lot of people interested in that," Braun told reporters at the Statehouse.
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FEDERAL GOVERNMENT RELATIONS
Senate stablecoin bill expected to gain bipartisan support
The Senate's Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, appears more likely to receive bipartisan support after Sen. Ruben Gallego, D-Ariz., and other Democrats negotiated amendments with Republicans. Gallego said the bill has improved significantly, addressing consumer protection concerns ahead of a final vote next week.
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Lawmakers call on OCC, Fed to ease bank leverage rules
Members of the House Financial Services Committee are calling for the Federal Reserve and the Office of the Comptroller of the Currency to ease leverage rules for banks. In a letter to Fed Chair Jerome Powell and acting Comptroller of the Currency Rodney Hood, Reps. Andy Barr, R-Ky.; Bill Foster, D-Ill.; Brad Sherman, D-Calif.; and Ann Wagner, R-Mo., advocated for changes "that will support liquidity in the Treasury market, especially in times of stress with haste."
OCC's Hood plans revisions to bank capital requirements
Acting Comptroller of the Currency Rodney Hood has announced plans to update the capital requirements for banks as part of an effort to soften regulations that might restrict credit availability. "Regulations must be effective, not excessive. As we continue interagency deliberations, I will remain committed to a capital framework that supports resilience but does not constrain growth," Hood said at the U.S. Chamber of Commerce's Capital Markets Forum.
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Trump signals flexibility on SALT cap in tax talks
President Donald Trump has told Senate Republicans he is open to a state and local tax, or SALT, deduction cap that would be lower than the $40,000 proposed in the House tax bill. Senate Finance Committee Chair Mike Crapo, R-Idaho, backs a lower cap to help pay for extending business tax breaks. However, House Speaker Mike Johnson, R-La., has said the $40,000 cap is essential for securing support in the House. The issue remains a key sticking point in negotiations over the final tax package.
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Bowman confirmed as Fed vice chair for supervision
The Senate has confirmed Federal Reserve Governor Michelle Bowman as vice chair for supervision. Bowman, a former Kansas state bank commissioner, has signaled support for more tailored regulatory oversight and plans to collaborate with fellow regulators on revising bank capital requirements, including the Basel III endgame.
Senate proposal seeks to nix CFPB funding through Fed
A proposal in the Senate Banking Committee seeks to end the Consumer Financial Protection Bureau's funding through the Federal Reserve. It would instead mandate that the agency pursue funding through the congressional appropriations process, according to a source. The proposal is aimed at inclusion in the tax and spending bill currently under consideration in the Senate. It would also reportedly limit the pay scale for the Federal Reserve's non-monetary staff to 70% of the pay levels at the Federal Deposit Insurance Corporation.
Push for interchange fee measure slows stablecoin bill
Efforts to increase credit card processing competition by requiring major banks to offer alternative networks to Visa and Mastercard have complicated the passage of a stablecoin regulation bill. Proposed by Sen. Roger Marshall, R-Kan., and Sen. Dick Durbin, D-Ill., the effort aims to lower the interchange fees that merchants pay to process credit card transactions. However, banks and airlines oppose the measure, and some senators say its inclusion would put the stablecoin bill in jeopardy.
Trump seeks $9.4B in spending cuts
The White House has proposed a $9.4 billion rescissions package to Congress, aiming to reverse previously approved spending. The proposal includes significant cuts to foreign aid and public media. The rescissions reflect the administration's push to reduce government spending, with further cuts being considered if this initial package succeeds.
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CFPB requests dismissal of open banking rule case
The Consumer Financial Protection Bureau filed a motion for summary judgment seeking the dismissal of a case regarding the agency's 1033 open banking rule. The CFPB is requesting that the U.S. District Court for the Eastern District of Kentucky vacate the rule, which the agency says "exceeds the bureau's statutory authority and is arbitrary and capricious."
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