Budget Reconciliation Round 2? An update on Congressional outlook

Scott Simpson

This past week reaffirmed the strong support credit unions have in Congress as credit unions, leagues, and America’s Credit Unions held hundreds of meetings in conjunction with the Governmental Affairs Conference.

While we continue strengthening those relationships and building awareness of the power of what credit unions do every day, we are not complacent. We know that some members of Congress and some business are calling for additional tax reform this year, creating renewed risk of bankers attacking our tax status.

Rest assured, America’s Credit Unions and the League System are vigilant against these threats.

However, the path to another budget reconciliation is difficult. It is unlikely that the House has the votes to advance a bill, despite Speaker Mike Johnson indicating he’d like to move a package; House Ways and Means Committee Chairman Jason Smith has said there’s limited support to do so. President Trump also recently told members of the press that it was unlikely to happen.

Last year, Republicans had expiring tax cuts to hold them together with a common goal, which we do not face this year. And prior to a reconciliation bill, Congress must pass a budget resolution, meaning we will have advance notice of any potential tax legislation.

We were successful in preserving credit unions’ tax status last year during the reconciliation process because we as a movement unified and put our political machinery into action. Credit unions, leagues, and America’s Credit Unions are relentless advocates.

To unnecessarily raise alarm or launch action alerts at this time would be premature, and could cause more harm than good. We do not want to add oxygen to coals that are burning out.

America’s Credit Unions and your leagues are closely engaged with high-ranking Administration officials and key members of Congress. Should a path to reconciliation emerge, we are ready.

Until then, we will continue building momentum and support for cooperative finance and advocating for policies that will advance, empower, and protect your institutions.

​Scott F. SimpsonPresident/CEO
America's Credit Unions

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