STATE GOVERNMENT RELATIONS
Bills to watch:
- Senate Bill 122 - Nonprofit Loan Center Loans for State Employees.
- House Bill 1033 - Retainage Requirements.
- House Bill 1038 - ESOP Linked Deposit Program.
- House Bill 1074 - Firearms Financial Transactions.
- House Bill 1081 - Distributions to Charitable Beneficiaries.
- House Bill 1125 - Earned Wage Access Services.
Senate Republicans Put Property Taxes, Medicaid Overhaul Atop Agenda
Senate Republicans’ top priorities for this legislative session include bills to overhaul Indiana’s property tax system and potentially cut about 200,000 people from the state’s Medicaid program. Republican senators gave the property tax bill the Senate Bill 1 designation and Medicaid program legislation will be Senate Bill 2.
Senate Democrats Knock Waitlists for Medicaid, Child Care as 'Harmful'
Senate Democrats decried Thursday what they called the underfunding of the state’s Medicaid and child care voucher programs that could put tens of thousands of people on waitlists. Senate Minority Leader Shelli Yoder, D-Bloomington, said the proposed cap on Healthy Indiana Plan enrollment would create "harmful waitlists" and force people to seek medical care at hospital emergency rooms.
House Democrats Look to Lower the Cost of Living for Hoosiers
House Democrats unveiled their 2025 legislative agenda, which called for the legislature to lower Hoosiers' cost of living and better fund traditional public schools.
FEDERAL GOVERNMENT RELATIONS
Some CFPB Rules May Be Repealed, Others Fought in Court
Under the Trump administration, Congress is likely to use the Congressional Review Act to repeal Biden-era Consumer Financial Protection Bureau rules, potentially including the agency's open banking rule, legal experts say. However, Republican lawmakers might be inclined to let other regulations continue to be challenged in court, including the CFPB's rule on overdraft services provided by large financial institutions, a regulation that has drawn a lawsuit from the Consumer Bankers Association.
Read more from American Banker
Second Lawsuit Filed Against CFPB Medical Debt Rule
ACA International and a Houston-based debt collector have brought a lawsuit alleging that the Consumer Financial Protection Bureau exceeded its statutory authority and violated the First Amendment with its final rule excluding medical debt from credit reports. The lawsuit is the second to challenge the CFPB rule, estimated to wipe $49 billion of medical debt from credit reports and boost credit scores. Opponents of the rule say it will make credit reports less useful and lending decisions more difficult.
Read more from American Banker
CFPB Revives Regulatory Sandbox, No-Action Letters
The Consumer Financial Protection Bureau has reinstated its regulatory sandbox and no-action letter initiatives, allowing banks and fintechs to apply to develop innovative products under specific regulatory conditions. The CFPB said the updated policies aim to enhance competition and transparency and address "shortcomings" in their previous iteration.
Fed's Bowman Backs Pragmatic Bank Regulation
Federal Reserve Governor Michelle Bowman has emphasized a pragmatic approach to bank regulation in remarks focusing on safety, soundness and transparency under the incoming Trump administration. Bowman criticized overly broad "crisis response" reforms and called for more tailored, justified policies.
Read more from American Banker
Fed Could Decrease Pace of Interest-Rate Cuts
During their meeting last month, Federal Reserve officials indicated they could slow the pace of interest-rate cuts in the year ahead, according to minutes from the gathering. The minutes also show that "almost all" officials see an increased risk that inflation could remain elevated.
Read more from the Associated Press
Fed's Barr to Exit Role as Top Banking Regulator
Michael Barr said he will resign as Federal Reserve vice chair for supervision, the Fed's top banking supervisory role, effective Feb. 28. Barr will remain on the Fed's board of governors, where his term is set to last until January 2032. The resignation comes amid questions over whether President-elect Donald Trump might try to remove Barr from the vice chair role and whether Barr might sue to maintain the position.
Read more from the Wall Street Journal
Trump Team Reportedly Plans New Fed Leadership
President-elect Donald Trump's advisers are reportedly considering reshaping Federal Reserve leadership, including possibly elevating Fed Governor Michelle Bowman to vice chair for supervision following Michael Barr's decision to step down from the role. Sources say that Trump's team is also compiling a shortlist of potential replacements for Fed Chair Jerome Powell, whose term ends in May 2026, with names such as Kevin Hassett and David Malpass under consideration.
New Congress Signals New Era for Banking and Crypto
The 2024 elections have introduced new voices in Congress that could significantly influence banking and financial policies. Notable newcomers include Sen. Pete Ricketts, R-Neb., who brings experience from TD Ameritrade, and Sen. Bernie Moreno, R-Ohio, who received crypto industry support to unseat former Senate banking committee Chair Sherrod Brown, D-Ohio. Sen. Ruben Gallego, D-Ariz., and Rep. Tim Moore, R-N.C., have joined key committees, with backgrounds in financial legislation and crypto advocacy. Several prominent banking voices in Congress departed after the 2024 elections, and longtime voices such as Rep. Patrick McHenry, R-N.C., and Rep. Blaine Luetkemeyer, R-Mo., have left politics.