WASHINGTON—Congress is back in session and it’s facing a myriad of issues and a ticking clock that will almost certainly have a bearing on credit union-favored and opposed legislation.
Lawmakers are expected to confront a crowded agenda in the coming weeks, including national security authorities, budget reconciliation measures, digital asset legislation and housing policy, according to representatives of the credit union trade groups who spoke during separate calls with the media.
Defense Credit Union Council Chief Advocacy Officer Jason Stverak said Congress will face significant time pressures beginning immediately, with the need to reauthorize Foreign Intelligence Surveillance Act provisions by next week, an issue he described as “very contentious,” particularly in the House. He added that potential votes related to the expulsion of House members could also consume floor time and media attention.
In the Senate, Stverak said some lawmakers are pushing for movement on a reconciliation package to fund the Department of Homeland Security, including Immigration and Customs Enforcement and the Border Patrol, which were not fully funded in prior legislation. That effort has contributed to delays, with DHS still operating under constrained conditions.
“Obviously the Senate is the place where things start getting slowed down,” Stverak said, noting that portions of DHS remain unpaid and that credit unions have stepped in to support affected members.
Muted Concerns Over Tax Status
Stverak said initial votes on a 2026 reconciliation bill are expected soon, but he downplayed the likelihood that credit union tax status will be included in that legislation, describing the current package as narrowly focused on DHS funding.
“I’m not as worried about the potential threat or discussion of the credit union tax status as part of the discussion around this reconciliation bill,” he said.
Similarly, Brad Thaler, head of regulatory advocacy with America’s Credit Unions, agreed such a “skinny” reconciliation package is unlikely to include any “pay-fors” such as the CU tax exemption as the proposal goes before Congress this week, and its fate remains to be seen. He added the trade group continues to share the credit union message on Capitol Hill while it monitors the ongoing debates.
What Needs to be Watched
Stverak added, however, that there are some potential developments down the road that need to be watched, and he warned that future reconciliation efforts—particularly one tied to approximately $345 billion in Department of Defense funding sought by the White House—could reopen discussions around tax provisions and revenue offsets.
“We are continuing to make sure…that the credit union tax status…should remain and stay a no-go,” Stverak said.
Beyond reconciliation, Stverak pointed to efforts to advance digital asset legislation, including the CLARITY Act, though he said disagreements remain among financial institutions, the crypto industry, the White House and congressional Democrats.
“There’s still a lot of behind-the-scenes compromise and debate that’s going to need to be done,” he said.
Housing legislation is also expected to be a focus, with the House and Senate having passed differing versions of a bill. Stverak noted the House version includes several credit union-backed provisions, while the Senate version does not. If the measure proceeds to a conference committee, DCUC has urged inclusion of items such as Central Liquidity Fund language, loan maturity changes, board modernization and member business lending provisions.
Stverak said Congress is likely to attempt progress on these issues before the Memorial Day recess.
The Role of the Crowded Calendar
In response to a question from The CU Daily on whether the crowded legislative calendar increases or decreases the chances of credit union-supported measures advancing, Stverak said the outlook is mixed.
“I think it’s a yes and no answer,” he said. “I think it’s no if they’re standalone pieces of legislation. There is just not time to dedicate to them, particularly in the Senate.”
However, he said larger legislative vehicles could create opportunities.
“I think it makes it more likely that as these larger bills are coming through…we’ll have that ability to hopefully tack on these incredibly common-sense credit union reforms as part of must-pass legislation,” Stverak said.
He added that year-end legislative packages and tax-related measures could also provide openings, emphasizing that advocacy efforts are focused on positioning credit union priorities for inclusion when those opportunities arise.
Looking for a Train
America’s Credit Unions’ Thaler echoed Stverak’s observations, noting that credit union-favored bills and language in Congress have traditionally ridden along with other larger bills, and this session is unlikely to be any different. “Historically, we’ve sometimes seen end-of-year legislation (during) the lame duck (session) is when things can get tacked on,” Thaler said. “We have to continue to look for vehicles that we can attach credit union-specific amendments to. In recent years that’s been things like the (National Defense Authorization Act) or any kind of omnibus bills that are out there. There are still the housing packages in both chambers. You potentially have crypto-related legislation, so there are a number of different trains to potentially tack things on to…We continue to pursue all avenues in search of relief and assistance for credit unions…”
