As Jan. 20 has come and gone, a new administration has entered the White House. The recent changing of the guard from the Trump to the Biden administration is consequential for credit unions to the inevitable change in federal regulatory policies and priorities. On President Biden's first day in office, his Chief of Staff asked all federal agencies to freeze proposed regulations and those with pending effective dates, including rules proposed by the National Credit Union Administration (NCUA).
President Biden's Chief of Staff, Ronald Klain, stated that the President's appointees should "have the opportunity to review any new or pending rule" in a letter to the leaders of federal departments and agencies. Klain asked federal department heads to immediately take the following steps:
- Refrain from proposing or issuing any rules—with some exemptions for emergencies—until Biden's appointed or designated leaders review and approve them.
- Immediately withdraw rules that have been sent to the Office of the Federal Register but not published in The Federal Register.
- Consider postponing the effective date of rules that have been published in The Federal Register, or have otherwise been issued but have not taken effect—and consider opening a 30-day public comment period on the rules.
- Notify the Director of the White House Office of Management and Budget (OMB) about any rules that should be excluded from the directive because they affect critical health, safety, environmental, financial, or national security matters.
- Comply with any applicable executive orders regarding regulatory management.
The OMB Director is responsible for implementing the regulatory review. The NCUA is expected to follow this order. Further, as had been expected even before President Biden's inauguration, NCUA Board member Todd Harper was appointed to Chairman of the agency on Monday, Jan. 25, 2021. If you have further questions or concerns about the Biden administration's actions concerning federal regulatory agencies, please contact League Regulatory Counsel Chris Noble, Esq. at email@example.com.