WASHINGTON– With Congress out of town this week for the Rosh Hashana holiday, most Washington analysts are predicting it’s unlikely when Congress reconvenes next week that it will be able to reach a deal on funding the government past Sept. 30.
That view includes credit unions.
Greg Mesack, SVP-advocacy with America’s Credit Unions, said when Congress returns it will be a “very decisive week” and it’s “looking highly unlikely that they will come to agreement. It’s not impossible, but unlikely. Most people will say it’s well over a 50% chance the government shuts down.”
The House of Representatives in a 217-212 vote passed a so-called “clean” continuing resolution to keep the government’s lights on for an additional seven weeks, but Senate Democrats have blocked that measure.
The Democrats are seeking to extend Obamacare subsidies and to restore nearly $1 trillion in Medicaid spending cuts.
Be Prepared for Shutdown
What all that means, said Mesack, is credit unions need to be prepared to help members affected by any government shutdown.
“Credit unions are leaders when it comes to serving their members and trying to help them through tough times,” Mesack said. “There are a lot of credit unions for government employees and we’re trying to work with them to make sure that the resources they need to continue helping their members.”
In addition, even with Congress in their home states and districts, Mesack said America’s Credit Unions remains focused on several issues, including that credit unions have parity with other financial institutions in any deposit insurance reform (such as raising coverage on certain accounts).
A Wary Eye
Credit unions also continue to be wary of any language or amendments, such as the Credit Card Competition Act, being added to the National Defense Authorization Act (NDAA), which has already passed the House and is now before the Senate. Discussion related to that legislation is likely to be delayed due to the budget impasse.
