[Congressional Record Volume 165, Number 151 (Thursday, September 19, 2019)]
[House]
[Pages H7805-H7807]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            SHUTDOWN GUIDANCE FOR FINANCIAL INSTITUTIONS ACT

  Ms. WATERS. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 2290) to require the Federal financial regulators to issue 
guidance encouraging financial institutions to work with consumers and 
businesses affected by a Federal Government shutdown, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2290

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Shutdown Guidance for 
     Financial Institutions Act''.

     SEC. 2. SHUTDOWN GUIDANCE FOR FINANCIAL INSTITUTIONS.

       (a) Guidance.--Not later than the end of the 180-day period 
     beginning on the date of enactment of this Act, the Federal 
     financial regulators shall, jointly, in consultation with 
     State banking regulators and other appropriate Federal and 
     State agencies, issue shutdown guidance to the financial 
     institutions they regulate encouraging the financial 
     institutions to--
       (1) work with consumers and businesses affected by a 
     shutdown;
       (2) recognize that consumers and businesses affected by a 
     shutdown may lose access to credit and face temporary 
     hardship in making payments on debts such as mortgages, 
     student loans, car loans, business loans, or credit cards;
       (3) consider prudent efforts to modify terms on existing 
     loans or extend new credit to help consumers and businesses 
     affected by a shutdown, consistent with safe-and-sound 
     lending practices; and
       (4) take steps to prevent adverse information being 
     reported in a manner that harms consumers affected by a 
     shutdown, including by preventing modified credit 
     arrangements intended to help consumers fulfill their 
     financial obligations from being reported to, and coded by, 
     consumer reporting agencies on a consumer's credit report in 
     a manner that hurts the creditworthiness of the consumer.
       (b) Notice of Guidance During a Shutdown.--Not later than 
     the end of the 24-hour period beginning at the start of a 
     shutdown, the Federal financial regulators shall, jointly, 
     issue a press release to alert financial institutions, 
     consumers, and businesses to the existence, and content, of 
     the guidance issued pursuant to subsection (a).
       (c) Post-shutdown Report to Congress and Updated 
     Guidance.--
       (1) In general.--Not later than the end of the 90-day 
     period beginning on the date a shutdown ends, the Federal 
     financial regulators shall, jointly, issue a report to 
     Congress containing an analysis of the effectiveness of the 
     guidance issued pursuant to subsection (a).
       (2) Updated guidance.--Not later than the end of the 180-
     day period beginning on the date a report is issued under 
     paragraph (1), the Federal financial regulators shall update 
     the guidance required under subsection (a) if any 
     shortcomings are identified in such report.

[[Page H7806]]

       (d) Definitions.--In this section:
       (1) Consumers affected by a shutdown.--The term ``consumers 
     affected by a shutdown'' means an individual who is an 
     employee of--
       (A) the Federal Government, and who is furloughed or 
     excepted from a furlough during the shutdown;
       (B) the District of Columbia, and who is not receiving pay 
     because of the shutdown; or
       (C) a Federal contractor (as defined under section 7101 of 
     title 41, United States Code) or other business, and who has 
     experienced a substantial reduction in pay due to the 
     shutdown.
       (2) Consumers and businesses affected by a shutdown.--The 
     term ``consumers and businesses affected by a shutdown'' 
     means--
       (A) a consumer affected by a shutdown; and
       (B) a Federal contractor (as defined under section 7101 of 
     title 41, United States Code) or other business that has 
     experienced a substantial reduction in income due to the 
     shutdown.
       (3) Federal financial regulators.--The term ``Federal 
     financial regulators'' means the Board of Governors of the 
     Federal Reserve System, the Bureau of Consumer Financial 
     Protection, the Comptroller of the Currency, the Federal 
     Deposit Insurance Corporation, and the National Credit Union 
     Administration.
       (4) Shutdown.--The term ``shutdown'' means any period in 
     which there is more than a 24-hour lapse in appropriations as 
     a result of a failure to enact a regular appropriations bill 
     or continuing resolution.

     SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from North Carolina (Mr. 
McHenry) each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in strong support of H.R. 2290, Shutdown 
Guidance for Financial Institutions Act, a bill introduced by one of 
our colleagues and a new member of the Financial Services Committee, 
Representative Jennifer Wexton of Virginia.
  Last December, President Trump shut the government down for an 
unprecedented 35 days, resulting in missed paychecks for countless 
government employees and contractors. About 800,000 Federal employees 
were furloughed and another 4 million or so Federal contractors were 
negatively affected.
  The resulting damage was significant. Many of our constituents, who 
did nothing wrong at all, found it hard to make essential payments--
such as payments on mortgages, rent, student loans, car loans, business 
loans, or credit cards--when their income was temporarily limited.
  Furthermore, the Congressional Budget Office estimated the shutdown 
cost the American economy $11 billion and it delayed approximately $18 
billion in Federal discretionary spending for compensation and 
purchases of goods and services.
  Should there be another government shutdown in the future, this bill 
will help ensure that, at a minimum, there is timely guidance provided 
by financial regulators to encourage financial firms to work with and 
help affected consumers. Consistent with prudent lending practices, 
firms would be encouraged to modify payment terms or extend credit, 
when appropriate, and prevent adverse information from being reported 
that might hurt a consumer's credit score.
  During the October 2013 shutdown, regulators issued guidance to 
financial institutions on day nine of the shutdown, urging financial 
firms to do what they could to help affected consumers.
  On January 11, 2019, financial regulators issued a joint statement to 
provide guidance to financial institutions, again encouraging them to 
help consumers affected by the shutdown. However, the guidance did not 
come until the 20th day of the shutdown and only came after I wrote 
regulators the day before prodding them to issue such critical 
guidance.
  This delay is unacceptable, whether it is 9 days or 20 days, and 
there is no reason why regulators should not prepare the appropriate 
guidance now and issue a press release within the first 24 hours of any 
future shutdown to remind financial institutions to help affected 
consumers, as H.R. 2290 would require.
  Furthermore, H.R. 2290 builds on H. Res. 77 that I sponsored and was 
passed by the House on a voice vote in January 2019, expressing the 
sense of Congress that financial institutions and other entities should 
proactively work to help consumers affected by any future government 
shutdown.
  Passing the Shutdown Guidance for Financial Institutions Act will 
help ensure guidance is provided to financial firms in a timely manner 
and that there is no ambiguity that struggling consumers affected by a 
shutdown, through no fault of their own, get the assistance that they 
need.
  I commend the work of Representative Wexton on this very important 
legislation. I support the bill, and I urge my colleagues to do the 
same.
  Madam Speaker, I reserve the balance of my time.
  Mr. McHENRY. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise today in recognition of Federal employees 
impacted by the government shutdown and express my support for Federal 
regulators and financial institutions supporting consumers in need of 
assistance in the event there is a lapse in Federal funding.

                              {time}  1645

  We just passed a continuing resolution to keep the government open 
earlier today. So the good news is, this fall does not look like storm 
season for Federal employees, and, hopefully, the contents of this act 
won't have to be used. I think that is a good thing. I think we can all 
agree that is a good thing. On a bipartisan basis, we should agree that 
it is a good thing.
  Whether it is a missed credit card payment or an unexpected medical 
expense, government shutdowns can leave Federal employees, contractors, 
and other individuals facing economic hardship through no fault of 
their own.
  Madam Speaker, if you look at the government shutdowns under the 
Carter administration, the Reagan administration, and the Clinton 
administration, the lapse in funding impacted people's lives, and we 
don't want Federal employees to be held hostage due to the inability of 
Congress and the executive branch to come to terms on Federal funding.
  H.R. 2290 requires Federal financial regulators to issue guidance 
encouraging institutions to work with individuals impacted by a 
government shutdown. It also requires the regulators to provide 
Congress with a report analyzing the effectiveness of that guidance. It 
is proper.
  I remind my colleagues that guidance does not constitute a formal 
rulemaking. Unlike a rule, guidance is nonbinding. This bill sets out 
best practices for both regulators and financial institutions, and they 
should take that guidance seriously.
  I also want to reiterate that this legislation conveys no new 
authority on Federal financial regulators. Let's make that clear. I 
know that many financial institutions and financial regulators are 
already implementing the best practices contemplated by this 
legislation.
  Six months or 7 months after the Federal Government shutdown, I think 
we have already seen that the regulators have taken action. 
Institutions have historically been cognizant of the needs of consumers 
who find themselves in these types of unforeseen situations. In fact, 
last fall, more than 100 banks took it upon themselves to offer loan 
modifications, payment deadline extensions, payroll advances, or low- 
or zero-interest rate loans, among other accommodations, to those 
impacted by

[[Page H7807]]

the shutdown. Those are positive actions. We know that those positive 
actions made a difference during that period of uncertainty.
  Federal financial regulators have also played an important role in 
ensuring fair treatment for consumers affected by a shutdown. In 
January of this year, the FDIC, the OCC, the National Credit Union 
Administration, the Federal Reserve, the CFPB, and the Conference of 
State Bank Supervisors partnered to encourage institutions to work with 
consumers who were negatively impacted. They took it upon themselves to 
do that, and they had the authority to do so.
  In a related financial institution letter, the FDIC encouraged all 
supervised institutions to consider prudent arrangements that would 
increase the potential for creditworthy borrowers to meet their 
obligations.
  While I agree with my colleagues across the aisle that we should 
encourage banks to work proactively with consumers affected by a 
shutdown, we must also encourage financial regulators to provide some 
type of clarity as well. This bill ensures exactly that.
  I think this bill is sufficient. It deals with the four walls of 
governance and the data held within government, and I think it is a 
good piece of legislation that codifies existing practices.
  I encourage my colleagues to support this bill, and I reserve the 
balance of my time.
  Ms. WATERS. Madam Speaker, I yield 5 minutes to the gentlewoman from 
Virginia (Ms. Wexton), a new member of the Financial Services 
Committee.
  Ms. WEXTON. Madam Speaker, I thank the gentlewoman for yielding.
  Madam Speaker, I rise today in support of my bill, H.R. 2290, the 
Shutdown Guidance for Financial Institutions Act.
  This legislation would help protect Federal employees, government 
contractors, and small business owners from some of the financial 
hardships that arise from a government shutdown.
  The shutdown that lasted from late December 2018 through January of 
this year, the longest in our Nation's history, stretched 35 days and 
cost the economy billions of dollars.
  For more than a month, paychecks were put on hold for 800,000 Federal 
employees and work-stop orders went on to Federal contractors, 
resulting in tens of thousands of layoffs. Unlike Federal workers, 
contractors did not receive backpay.
  Thousands of families saw their lives upended. Missing one paycheck 
is a hardship for many, but missing two can be devastating. Not only 
were people struggling to make their rent or mortgage payments, some 
had to rely on food pantries to feed their families or ration their 
insulin because they could not afford the copay. This was through no 
fault of their own.
  During this time, a lot of companies stepped up with offers of 
assistance for people impacted by the shutdowns, including banks and 
credit unions that offered flexible payment options and no-interest 
loans.
  This was especially important for employees in the national security 
community because financial difficulties can damage their credit scores 
and put their security clearances and, therefore, their livelihoods at 
risk.
  While it is positive to see so many lenders taking proactive steps to 
mitigate harm, there were still issues and confusion at some financial 
institutions, and regulator guidance from the Federal Government was 
slow to come. It was not until the 20th day of the shutdown that 
financial regulators provided guidance, encouraging banks to work with 
borrowers and account holders affected by the shutdown, and letting 
banks know that such efforts would not be subject to examiner 
criticism.
  During the shutdown in 2013, it wasn't until the ninth day that 
similar guidance was released. Let me give you an example of why this 
matters. I want to read part of a letter that I received from a 
desperate constituent in the middle of the last shutdown.

  She wrote: ``My husband and I recently sold our home and put an offer 
on another home in the area. . . . The mortgage financing for our new 
home was all set before the government shutdown. Our closing date is 
set for January 28, 2019, on the new house. Today, we learned that the 
mortgage company is denying our mortgage application because I am 
furloughed. They consider me unemployed and too much of a risk to 
finance.''
  Thankfully, my constituent and her lender were able to work through 
this problem. The mortgage was eventually approved, but this never 
should have happened in the first place.
  My legislation would essentially automate the process of issuing 
guidance by requiring Federal financial regulators to release guidance 
within 24 hours of the start of a shutdown. It also includes reporting 
requirements on the effectiveness of the guidance and requires 
regulators to fix any shortcomings that are identified.
  Madam Speaker, despite the uncertainty and the hardship of the last 
few years, Federal workers have shown a steadfast commitment to 
service. They serve in every congressional district in every State, 
carrying out countless vital responsibilities on behalf of the American 
people. They deserve way better than the way they have been treated.
  I thank Chairwoman Waters and Ranking Member McHenry for ushering 
this bill to the floor, and I urge my colleagues to support it.
  Mr. McHENRY. Madam Speaker, I reserve the balance of my time.
  Ms. WATERS. Madam Speaker, I yield myself the balance of my time.
  We should all work to make sure that there is never again a 
government shutdown. However, if one occurs, this bill will ease the 
burden on many vulnerable workers and families.
  Once again, I commend the gentlewoman from Virginia for bringing this 
legislation to the House, and I urge my colleagues to join me in 
supporting this important piece of legislation.
  Madam Speaker, I yield back the balance of my time.
  Mr. McHENRY. Madam Speaker, I think this legislation puts to rest the 
need for the Financial Services Committee to legislate around the 
government shutdown. I am glad we were able to put that to rest, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 2290, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________