WASHINGTON–As hard (or frustrating) as it may be to believe, with the new year will also come the threat of yet another government shutdown, although an executive with America’s Credit Unions believes there is actually two pieces of good news: A shutdown will be avoided this time around, and money for the CDFI Fund will finally be approved.
The latest federal government funding deadline under the continuing resolution (CR) Congress passed is Jan.30, 2026. That’s the date current funding for most federal agencies expires unless lawmakers pass new appropriations bills or another continuing resolution before then.
Greg Mesack, senior VP of advocacy with America’s Credit Unions, believes Congress will pass the bills necessary to continue to fund the federal government, and he expects the related debate and discussion to get much of the attention in the House and Senate.
‘Something Will Get Worked Out’
“I think it will both dominate the agenda and something will get worked out,” Mesack said during a media call in response to a question from the CU Daily. “Right before (Congress adjourned) the appropriators announced their topline agreement on topline numbers, which is kind of the big holdup between the House and Senate. They also announced they had kind of moved on several small packages. So, in a positive note, they actually have a plan in place, they actually have some agreement.
“Now, between that and actually getting something passed is a big wide canyon, but I do think there’s a path forward,” Mesack added. “I don’t think that either party really has an appetite for another big shutdown. Both sides made their point in October November; no one really wants to see that happen…I think there’s a real desire on both sides and across the leadership in both parties and in both chambers to try to get something done.”
Mesack noted Congress will be looking to move three packages of bills through both the House and the Senate in January.
Risk to Credit Unions?
In the most recent infighting around funding the federal government the credit union trade groups were on alert that the CU tax exemption could be put at risk as the government seeks new revenue. But Mesack said there is no risk of that come January.
That’s because when Congress reconvenes it will be looking at spending bills, not revenue or tax bills, which must move through Ways & Means.
“Once you open that door it’s just a can of worms that no one wants to touch,” Mesack explained. “I think these bills will be specifically focused on spending. There could be a few small policy riders like there always are in appropriations bills, but they won’t go through (the tax committees). That’s a whole separate discussion.”
Any discussion around “revenue-raisers,” such as the CU tax exemption, will only “make it even harder” to get anything else done during the three weeks Congress is in session in January, Mesack said.
Cure Sought for Healthcare Costs
Mesack added Congress will also be focused healthcare and the expired provisions related to the Affordable Care Act, which has become a strong point of divide between Democrats and Republicans.
