Economics/Economic Development

CBAI Federal Policy Priorities - Agriculture and Rural America In the 119th Congress, CBAI strongly advocates for the passage of a multi-year Farm Bill that provides ample funding for commodity programs and rural broadband, maintains strong crop insurance products, approves higher USDA-guaranteed loan limits and expedited USDA Express program approvals, and prevents the expansion of the Farm Credit System into non-farm lending activities and opposes their exemption from the Section 1071 small business data reporting requirements. Community banks and their agricultural borrowers merit favorable tax treatment for interest income on ag loans secured by ag property and primary residences in ag communities. This will help sustain and strengthen ag lending by community banks and reduce interest expenses for their banks ag borrowers. The Federal Home Loan Banks (FHLBs) in Their Comprehensive Review by the FHFA The FHLB System is an admirable public-private partnership where the FHLBs banks provide short-term liquidity, long-term funding, mortgage-related products, and other financial services to help their owner-members weather crisis and provide affordable credit to support the local communities. FHLBanks contributes a substantial portion of its income to affordable housing and community development in their respective districts. The Federal Housing Finance Agency (FHFA) has embarked on a comprehensive review of the FHLBs. CBAI recommends that the FHFA should not seek to disrupt the cooperative structure, regional nature, special functions, and the unique purposes of the FHLBanks. Reasonable Regulatory Rules and Implementation Modernizing the Community Reinvestment Act The Final Joint Rule was published in October of 2023. The Final Joint Rule was flawed because it exempted too few financial institutions and for many other reasons. There have been legal challenges to the Final Joint Rule. CBAI supports the reasonable implementation of the CRA that includes credit unions being subject to the CRA. Meaningful Regulatory Relief for Community Banks and Regulatory Overreach CBAI joins the ICBA in supporting a more efficient system of rules and regulations, unbiased laws governing the financial sector, a safer and more secure business environment, and more efficient agricultural policies to support the nations economic growth and development in all parts of the country. Many new and significant rules have been approved which individually and collectively present incredible challenges for community banks which are less likely to be able to comply with these many new requirements. CBAI urges carefully constructed legislation and regulation, robust congressional oversight of the regulators, and a moratorium on new rules until the impact of existing rules can be thoroughly assessed to minimize the damages to community banks. Credit Unions and Their Expanded Powers Credit unions have long since strayed from their founding purposes, weaponizing their competitive advantages, and are virtually indistinguishable from tax-paying community banks. Credit union acquisitions of community banks are increasing at an alarming pace and is an abuse of the tax code which exacerbates consolidation among financial institutions, negatively impacts all taxpayers, and reduces consumer choice. Credit union abuse of their tax exemption is an existential threat to community banks and the communities they serve and must end. Farm Credit System and its Expanded Powers The Farm Credit System (FCS) has long since strayed from its founding purpose, weaponizing its competitive advantages against community banks. The FCS is the only government sponsored entity (GSE) that competes directly with community banks. Its lenders leverage their tax and funding advantages as a GSE to steal away many of the best agriculture loans from community banks, which is contrary to their mission of serving young and beginning farmers and ranchers. This blatant and continued discrimination against community banks must end, the FCS competitive advantages must be reined in, and the playing field must be leveled for community banks. The Federal Reserves Role in Payments System Improvement (FedNow Service) The FedNow Service is a significant payments system improvement. The payments system must not be monopolized by The Clearing House and its large bank owners with their RTP Network. Community banks, consumers and small businesses must rely on the Federal Reserve to provide access to a safe and secure payments system, which requires the Fed to play a preeminent role in system improvements. The FedNow Service should have robust capabilities, should be interoperable with other payments systems and should only be accessed by regulated financial institutions - not Amazon, Walmart, and the many fintechs that are seeking direct access to the payment rails. Finally Address the Risks of Too-Big-To-Fail Banks and Financial Firms, to Protect Community Banks, our Financial System, the Economy, and American Taxpayers from Future Bailouts The Great Financial Crisis, and the mini crisis caused by the failures of SVB and SBNY, were caused by the misconduct of the nations largest banks and financial firms and by banking regulators that did not ensure the safety and soundness of these financial behemoths. The megabanks and financial firms have proven, at great cost to American taxpayers, that they cannot be managed, supervised, disciplined or prosecuted. They are clearly too-big-to-change, too-big-to-fail, and must be downsized. This necessary policy objective can be accomplished by separating the traditional deposit-taking and lending activities of the largest banks from their speculative investment banking, securities underwriting, and market making activities. The time to act is now before the next financial crisis. (House and Senate) Legislation and Regulation - H.R. 6644 the Housing for the 21st Century Act (Title VI) regarding the inclusion of FDIC modernizing insurance and reciprocal deposit rules, targeted regulatory and examination relief, lowering compliance costs, encouraging the formation of new community banks, and strengthen Minority Depository Institutions (MDIs) (House and Senate) S. 2651 or the ROAD Act which is the 21st Century ROAD to Housing Act regarding the inclusion of the provisions in H.R. 6644 (Housing for the 21st Century Act (Title VI) (House and Senate) H.R. 7567 or the Farm, Food, and National Security Act of 2026 (aka the Farm Bill) regarding strengthening the farm safety net, USDA guaranteed loan improvements, Farm Credit System (FCS) expansion provisions, Essential Community Facility (ECF) lending expansion, FCS ownership of Rural Business Investment Corporations (RBICs), loans to businesses for aquatic-related purposes, and potential amendment - expanding FCS home mortgage lending to towns of 10,000 (House) Letters - Comment Letter to the IRS regarding interim guidance concerning interest on loans secured by rural or agricultural real property under section 139L of the Internal Revenue Code - Notice 2025-71 (IRS) Comment Letter to the Federal Reserve regarding Request for Information and Comments on the Future of the Federal Reserve Banks Check Services - Docket No. OP-1874 (Federal Reserve) Action Alerts - Action Alert - Urge Your Representative to Support Community Bank Regulatory Relief (House) (See H.R. 6644 Housing for the 21st Century Act above) Miscellaneous - None

no specific legislation

Maritime and Economic Development

Engagement with U.S. executive branch agencies and Congress on issues affecting U.S.-Colombia economic and trade relations. Advocacy related to policies impacting Colombian industry and business sectors, including market access, trade facilitation, supply chains, investment, and regulatory cooperation. Monitoring and engagement on U.S. legislation, regulations, and international economic initiatives that may affect Colombian manufacturers, exporters, and multinational companies operating between Colombia and the United States.

Assist in planning Legislative trips to discuss city's priorities; Assist in securing funding for water main pipeline project.

Funding opportunities for local projects and priorities - water drainage project; Assist in setting up DC trips to meet with Members.

Funding opportunities for water project; Assist in planning DC trips and meeting materials.

Engage directly with federal Congressional delegation representing the Hattiesburg region to educate them on the expedited need for review and approval by the Corps, EPA, and other agencies of jurisdiction; funding for development project.

Issues related to the Innovation and Development in Ecuador (IDEA) Act, H.R.6414/S.913 (generally, no specific provisions)

Guidance for Opportunity Zones.