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U.S. House Passes Highway and Transportation Funding Bill Without Harmful Federal Reserve Stock Dividend Cut

The United States House of Representatives approved the highway and transportation funding legislation with two CBAI and ICBA-advocated amendments blocking a backdoor tax hike on members of the Federal Reserve System and advancing community bank regulatory relief. Following the vote, ICBA called on the House and Senate to include these amendments in any final highway and transportation legislation they send to the President.

An amendment from Congressmen Randy Neugebauer (R-TX) and Bill Huizenga (R-MI), which passed by a wide bi-partisan vote of 354-72, would remove a Senate-passed 75 percent cut to dividends paid on Federal Reserve Bank stock. CBAI thanks House members who voted in favor of the Neugebauer-Huizenga Amendment, including Illinois’ Mike Bost (R-12), Cheri Bustos (D-17), Danny Davis (D-07), Rodney Davis (R-13), Robert Dold (R-10), Tammy Duckworth (D-08), Bill Foster (D-11), Randy Hultgren (R-14), Robin Kelly (D-02), Adam Kinzinger (R-16), Darin LaHood (R-18), Dan Lipinski, (D-03), Mike Quigley (D-05), Peter Roskam (R-06), Jan Schakowsky (D-09), and John Shimkus (R-15). Illinois members Luis Gutierrez (D-04) voted “No’ and Bobby Rush (D-01) was “Not Voting”.

Another amendment, which was offered by House Financial Services Chairman Jeb Hensarling (R-TX) and passed on a voice vote, included 15 measures that already passed the House with broad bi-partisan support, included several provisions from ICBA’s Plan for Prosperity. Specifically, the Amendment included CBAI and ICBA support provisions to eliminate redundant privacy notice requirements, expand the 18-month exam cycle and allow thrift holding companies to take advantage of beneficial SEC registration thresholds.

The CBAI and ICBA-advocated amendments passed following strong grassroots efforts by community bankers, though their continued advocacy will be needed as the House and Senate work to resolve differences between their conflicting versions of the bills.

November 6, 2015