WASHINGTON — The House has passed a budget resolution that is strongly favored by President Trump, and credit unions—wary of the CU tax exemption being eliminated as Congress looks for new revenue—are using passage to make their case for the value of that tax exemption.
The resolution was adopted in a 216-214 vote, with two Republicans — Reps. Thomas Massie of Kentucky and Victoria Spartz of Indiana — joining all Democrats to vote against it.
Approximately one-dozen House conservatives who had expressed opposition to the plan—voted in favor after being reassured the Senate would pursue a minimum of $1.5 trillion in savings.
The Economic Benefits of CUs
“As President Trump and Congress begin drafting the contents of a budget package in earnest, America’s Credit Unions will continue to advocate for priorities that strengthen the financial well-being and create opportunities for working Americans and small businesses,” Jim Nussle, president and CEO of America’s Credit Unions, said in a statement. “One of the best ways to do that: Preserving the credit union industry’s federal tax status. The economic benefits of the tax status are clear, with nearly $27.5 billion in direct benefits and $38.3 billion in total benefits to American families. Removing it would be a significant hit to our economy, losing $33 billion in income tax revenue, reducing GDP by $266 billion, and costing 822,000 jobs over 10 years.
“Credit unions are committed to investing in the 142 million people and communities they serve and we will make sure President Trump and lawmakers see how the industry supports their economic goals,” Nussle added.
Overcoming Democratic Opposition
As the CU Daily reported earlier, the Senate has already passed a budget resolution of its own. Using the reconciliation process means Congress can bypass the 60-vote threshold required to advance most legislation in the Senate, and Republicans, who have control of the House and Senate, will be able to pass the measure without any support from Democrats should they choose to do so.