House-Senate deal includes CFIUS bill but no risk-based capital delay for CUs (or free rent for banks)

A House-Senate conference panel has reached agreement on fiscal 2019 defense authorization that excludes a House-passed provision requiring the Department of Defense (DoD) to allow banks to operate on military installations rent-free — but also leaves intact the federal credit union regulator’s rules on “risk-based capital” scheduled to take effect next year.

That conference agreement on H.R. 6147, the fiscal 2019 National Defense Authorization Act (NDAA), also includes the Senate version of the Foreign Investment Risk Review Modernization Act of 2018, which is intended to “modernize and strengthen” the Committee on Foreign Investment of the United States (CFIUS).

The House version of this CFIUS legislation was identical to the Senate version in all but one respect: it would have set a two-year delay (until Jan. 1, 2021) in the implementation of the National Credit Union Administration’s (NCUA) risk-based capital rule (RBC).

While the delay in the credit union regulator’s RBC rule is not provided in the conference agreement on NDAA, it is reflected in two other pending bills: a free-standing House bill (H.R. 5288); and in the recently House-passed JOBS Act 3.0 (which awaits Senate action).

The Senate is considering the appropriations package this week. A House-Senate conference on this measure is anticipated.

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