4 Republicans Lead the Pack to Head Up the House Financial Services Committee

Their feelings about credit unions seem mixed

By David Baumann, Editor, Washington CU Daily

It’s safe to say that whoever serves as the top Republican on the Financial Services Committee next year won’t wear bowties every day.

Not much else is certain.

Financial Services Chairman Rep. Patrick McHenry has announced that he will not run for re-election to the House, so the top Republican seat is open. So far, four members—all of whom have been supported by the credit union and banking industries in their campaigns—are vying for the seat.

Rep. Blaine Luetkemeyer, R-Mo., who otherwise would have been considered a leading contender for the top spot, has also announced his retirement.

That leaves four members, all of whom have generally safe seats, competing for the top spot. Since this is an election year and the entire House is up for re-election, the first question to be answered is whether whoever is chosen will wield the committee gavel. If Republicans retain the House, that person will be the chairman; if Democrats gain control of the House, that person will play second fiddle as ranking Republican on the panel.

The four candidates have a common enemy: the Consumer Financial Protection Bureau (CFPB). They all have pushed to limit its powers.

The Financial Services Committee is known as a “money committee,” meaning its members have no trouble raising money for their campaigns. This year, the four candidates are likely to take some of their campaign contributions and donate to other House Republicans in an effort to gain an upper hand in the chairmanship race.

French Hill, R-Ark.

Hill, the current vice chairman of the Financial Services Committee, has been in the House since 2015. During his tenure, he has pushed issues that are near and dear to credit union trade groups.

Hill might not be the credit union industry’s favorite candidate. First, he’s a former banker. Earlier in his career, Hill served as the president/CEO of the Delta Trust & Banking Corporation in his home state.

During a committee hearing last year, Hill also expressed concern about credit unions purchasing banks. Using language often used by banking trade groups, he said he was worried about tax-exempt credit unions purchasing tax-paying banks—taking them off the tax rolls.

Last month, Hill met with “Friends of Traditional Banking,” a banker Super Political Action Committee. A Super PAC does not contribute directly to candidates. In the case of FOTB, the group endorses a couple of candidates each election cycle and urges bankers to contribute to their campaign.

FOTB has not yet endorsed its candidates for 2024 but pointed out in its most recent newsletter that if chosen, Hill would be the first banker to chair the committee since World War II.

Hill did not list credit union membership in his latest financial disclosure report.

Andy Barr, R-Ky.

Barr, a House member since 2013, currently chairs the Financial Services Committee’s Financial Institutions and Monetary Policy Subcommittee.

An attorney, Barr is a rabid opponent of the CFPB.

During the current Congress, he is the primary sponsor of legislation that would convert the single-director CFPB into a five-member commission and fund the bureau through the appropriations process rather than by the Federal Reserve.

He is also the primary sponsor of legislation that would punish certain credit unions, banks and payment card networks if they refuse to do business with a person who is not breaking the law. That may sound confusing, but Republicans have long wanted to ensure that financial institutions cannot refuse to conduct business with gun businesses.

Of note, Barr was the first House member endorsed by “Friends of Traditional Banking” in 2018.

Barr did not list a credit union membership in his most recent financial disclosure report filed with the House.

Bill Huizenga, R-Mich.

Huizenga, R-Mich., serves as the chairman of the panel’s Oversight and Investigations Subcommittee and has been in the House since 2011. He is the co-owner of his family’s gravel company.

Huizenga was one of the main sponsors of H.R. 582, legislation that would allow credit union boards in good standing to meet every other month rather than the current monthly requirement.

“These commonsense reforms will allow federally chartered credit unions in good standing the same, reasonable governance practices afforded to those at the state level,” Huizenga said when the House passed the legislation last year.

A companion bill has been introduced in the Senate but has yet to be considered in that chamber.

Huizenga did not list credit union membership in his most recent financial disclosure report.

Frank Lucas, R-Okla.

Lucas has served in the House since 1995 and is currently chairman of the Science, Space and Technology Committee. He previously served as chairman of the House Agriculture Committee. His family has farmed in his home state for more than 100 years.

Lucas is the senior member of the Financial Services Committee.

“Since Chairman McHenry’s announcement to retire late last year, I have been approached by several of my colleagues who have encouraged me to seek the Financial Services Committee Chairmanship,” Lucas said when he announced that he would seek the chairmanship. “With 30 years of experience on the Financial Services Committee in addition to my more than two decades of Committee leadership experience across multiple House committees, I am well positioned and well equipped to lead the Committee. To best serve my constituents, my colleagues, and the U.S. House of Representatives, I am seeking the chairmanship of the House Financial Services Committee.”

Lucas is a member of the Congressional Credit Union, according to his latest financial disclosure report.