WASHINGTON – The Senate has passed its Fiscal Year 2025 Budget Resolution, but it did so without an amendment aimed at protecting the credit union tax exemption.

During debate and mark-up of the resolution, which passed on a 51-48 vote along party lines and which would make President Trump’s tax cuts permanent, Sen. Alex Padilla (D-CA) has put forth Amendment 1637, which sought to protect the tax-exempt status of credit unions.

“It shall not be in order in the Senate to consider a bill or joint resolution reported pursuant to section 2002, or an amendment to, conference report on, or amendment between the Houses in relation to such a bill or joint resolution, that would eliminate the tax-exempt status of credit unions,” the amendment read.

‘Deeply Grateful’

“We are deeply grateful to Senator Alex Padilla for standing up for credit unions during the recent Senate budget vote-a-rama,” said Jason Stverak, chief advocacy officer with the Defense CU Council, in a statement. “By proposing Amendment 1637, Senator Padilla took a strong stand to protect the tax-exempt status of credit unions—a status that allows not-for-profit, member-owned institutions to better serve their communities, especially military families and veterans.

“While the amendment was not voted on, it’s encouraging to see members of Congress recognize the vital role credit unions play in financial readiness and community impact,” Stverak added.