STATE GOVERNMENT RELATIONS
Bills to watch:
- Senate Bill 289 - Non-discrimination in employment and education.
- Senate Bill 327 - Marion County Small Claims Court jurisdiction, venue, and fees.
- Senate Bill 346 - Rural business growth.
- House Bill 1001 - State budget.
- House Bill 1081 - Distributions to charitable beneficiaries.
- House Bill 1174 - Charges for supervised loans.
- House Bill 1441 - Bank accounts for foster children.
- House Bill 1523 - Public depositories.
House advances budget plan amid worries of federal cuts
Caution flags were raised about the state’s fiscal picture as House Republicans voted Thursday to advance their version of the state budget.
Concerns discussed by some Republican legislators focused on the prospects of federal funding cuts by the Trump administration that could impact state spending.
House members voted 66-28 along party lines in favor of House Bill 1001, sending it to the Senate for further debate ahead of the General Assembly’s late-April adjournment.
Braun says veto likely without ‘real relief’ in Senate Bill 1
Gov. Mike Braun says he will likely veto the property tax overhaul bill moving through the Legislature unless significant changes are made. Asked during a news conference Wednesday whether he would veto the legislation and call lawmakers into a special session, the governor said, “If it doesn’t improve, I’m likely to do both of them, depending on what you need to do to actually get real relief.”
Beckwith, OCRA announce $9.4M in federal grants for 15 rural communities
The office of Lt. Gov. Micah Beckwith and the Indiana Office of Community and Rural Affairs announced 15 rural communities will receive more than $9.4 million in federal grant funding to expand community facilities, improve water infrastructure and eliminate blight.
FEDERAL GOVERNMENT RELATIONS
OCC denies plans for agency consolidation
The Office of the Comptroller of the Currency has denied plans to consolidate with other federal banking regulators, despite concerns raised by employees about email lists for potential transferees from the Federal Deposit Insurance Corp. and Consumer Financial Protection Bureau. The OCC says the lists are legacy accounts and not part of any current consolidation plans.
Fed's Waller: Stablecoins may make inroads into retail
Some fintechs are exploring greater use of stablecoins in retail payments with regard to point-of-sale technology and peer-to-peer apps, but "it remains to be seen whether stablecoins will scale for retail payment use cases," Federal Reserve Governor Christopher Waller said. Challenges include the lack of federal regulatory oversight for stablecoins, the potential for consumer adoption of stablecoins, and questions about how issuers and merchants can generate revenue from stablecoin use, Waller said.
Senate approves budget resolution
The Senate approved a budget resolution in a 52-48 vote after holding a so-called vote-a-rama involving dozens of proposed amendments. Also this week, President Donald Trump endorsed the House's push for a one-track plan addressing multiple legislative priorities, including tax policy.
Judge: CFPB small-business data rule should remain intact
A federal magistrate judge has issued an opinion that recommends granting summary judgment in favor of the Consumer Financial Protection Bureau in a challenge to the agency's final rule regarding data collection on small-business lending. U.S. Magistrate Judge Eduardo Sanchez of the District Court for the Southern District of Florida wrote that the rule is not arbitrary and capricious and that the CFPB did not act outside its authority in applying the rule to merchant cash advance lenders.
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Judge removes obstacle to Corporate Transparency Act
The Corporate Transparency Act is slated to take effect once more now that a federal judge has reversed an injunction, but the Treasury Department's Financial Crimes Enforcement Network has postponed the filing deadline for many affected businesses to March 21.
Read more from the Wall Street Journal
Fed's Barr counters claims of debanking based on politics
Michael Barr, the Federal Reserve's vice chair for supervision, said he has not "seen any evidence of" the debanking of customers based on political affiliations, countering claims made by President Donald Trump and other Republicans. Barr also discussed the potential disruptive impact of AI on the economy, urging banks to invest in AI systems and training, and highlighted the role of the Consumer Financial Protection Bureau in monitoring big banks and nonbank financial institutions.
Read more from American Banker
Trump order aims to curb independent agency power
President Donald Trump has issued an executive order to increase oversight of independent federal agencies such as the Securities and Exchange Commission, the Federal Trade Commission and the Federal Communications Commission. The order requires these agencies to submit draft regulations for White House review and consult with the administration on strategic plans, potentially leading to legal challenges. The Federal Reserve's monetary policy work is exempt, but its supervision of financial institutions is not.
Layoffs hit FDIC amid government downsizing efforts
The Federal Deposit Insurance Corp. has laid off several employees as part of the Trump administration's wider initiative to reduce the federal workforce. The layoffs, which affected certain probationary employees, came amid ongoing staffing challenges at the FDIC.
Fed's Bowman urges transparency in bank oversight
Federal Reserve Governor Michelle Bowman has called for greater transparency in bank oversight, criticizing the use of inaction and opacity as supervisory tools. In a speech, Bowman highlighted the need to reassess the regulatory approach, particularly in supervision and bank applications. "The greater flexibility afforded in the supervisory process can lead to poor outcomes, often caused by the temptation to use inaction and opacity as supervisory tools," said Bowman.