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A financial deregulation bill that could become law next year would require the U.S. credit-union regulator to submit its budget to public comment, a change that critics say gives the industry a platform for influencing its overseer, the Wall Street Journal reported. The new budget process for the National Credit Union Administration (NCUA) has broader implications because it could set a precedent for other agencies that watch over the financial sector, such as the Consumer Financial Protection Bureau. The NCUA currently holds public meetings on its budget voluntarily, but the bill would formalize that process. Financial regulators like NCUA are generally funded by fees on the industries they oversee. Some, such as the consumer bureau, set their own budgets, while others must win approval from Congress. If the bill becomes law, the NCUA will be the only financial regulator required to hold a public hearing where industry can weigh in on spending.

Puerto Rico’s government is running into resistance in Washington, D.C., on pending legislation affecting the island while its federal overseers try to tighten their grip over local policy decisions, WSJ Pro Bankruptcy reported. The Republican tax overhaul headed for a vote in Congress this week doesn’t grant any of Puerto Rico Gov. Ricardo Rosselló’s requests for more favorable tax treatment and weakens the rationale for U.S. companies to manufacture there, according to lobbyists and tax experts. House Republicans also unveiled a disaster relief package on Monday evening to help Puerto Rico rebuild from Hurricane Maria, with some strings attached. The legislative changes come as some lawmakers have voiced mistrust of the indebted island government after details emerged on a controversial $300 million no-bid construction contract awarded in the storm’s aftermath. Complicating matters, Gov. Rosselló is clashing with a federal oversight board that has tried to enlarge its sphere of influence at his administration’s expense.

House Republicans on Monday night unveiled legislation that would authorize $81 billion in disaster aid for victims of recent storms, a move that quickly drew backlash from conservatives about its impact on the federal deficit, the Wall Street Journal reported. Republicans said that the bill was aimed at providing help for storm-battered and fire-stricken areas in Texas, Florida, California, Louisiana, Puerto Rico and the U.S. Virgin Islands. House Republicans from Texas and Florida praised the aid package, nearly double the $44 billion the White House had requested last month to help states recover this year’s devastating storms. House GOP lawmakers from the two state delegations met yesterday to discuss the deal, which many had said was needed before they would support spending bills that must pass this week to avoid a government shutdown. The government’s current funding expires at 12:01 a.m. on Dec. 23.

Bipartisan legislation in the Senate to roll back parts of the Dodd-Frank financial reform law is running into trouble in the House, The Hill reported. The Senate Banking Committee last week advanced a bill that would scale back Dodd-Frank rules for small and mid-sized banks. Sponsored by Banking Committee Chairman Mike Crapo (R-Idaho), the legislation has enough support among Democrats to avoid a filibuster. That’s largely because it focuses on scaling back federal oversight of banks without touching other portions of Dodd-Frank that Democrats are determined to protect. But House Republicans pursuing a rival regulatory overhaul have given the bill a chilly reception, saying that it doesn’t include the transformative changes needed for Dodd-Frank and the agency it created, the Consumer Financial Protection Bureau (CFPB).

Congress yesterday passed a two-week stopgap spending bill, deferring until later in the month a bigger fight over what issues should be resolved before lawmakers leave Washington for the year, the Wall Street Journal reported. The spending patch, which will keep the government funded through Dec. 22, avoids a partial government shutdown just over a day before its current funding expires at 12:01 a.m. Saturday morning.

The Senate Banking Committee yesterday moved toward approving legislation that would ease restrictions on community banks and small financial institutions like credit unions, amid criticism from regulation advocates that the bill would be a giveaway to large banks, MorningConsult.com reported. The measure being marked up, S. 2155, boasts bipartisan support from Republicans and moderate Democrats — including many who will face tough re-election contests next year in states that President Donald Trump won in 2016. The legislation would raise the threshold — from $50 billion in assets to $250 billion — for determining whether a bank is systemically important. It would also give the Federal Reserve discretion to conduct stress tests on institutions valued between $100 billion and $250 billion on a periodic basis, in addition to loosening industry-wide rules regarding issues like home mortgages and supervision.