WASHINGTON–Congress is now in a “three-week sprint” ahead of the Easter recess and credit unions are watching any number of issues on Capitol Hill, not the least of which is how far will the tax-exemption be dragged into discussions around the federal budget.
The credit union tax exemption, of course, has become a perennial issue but this year it’s getting renewed attention because the Trump tax cuts are expiring and Congress is looking to extend them while also finding a way to pay for the trillions of dollars in costs to the Treasury such an extension will involve.
“Before the Easter recess both the House and Senate Republicans want to get done at least the passing of a budget to begin the reconciliation process,” said Jason Stverak, chief advocacy officer with the Defense Credit Union Council. “DCUC remains committed to reminding members of the House and the Senate of the…importance of the credit union tax status for credit unions and, specifically, our defense credit unions…to be able to serve our nation’s veterans, active-duty military and their families. Eliminating that tax status would greatly hamper our ability to serve our nation’s military and greatly impinge upon the financial readiness of our forces.”
Looking for ‘Pay-Fors’
Stverak said DCUC expects that by Thursday or Friday of this week Congress will begin looking for the “pay-fors,” that is ways to pay for what’s included in the budget, especially the tax cuts.
“We are working to ensure that as part of that discussion credit unions are become the final thing on the menu,” Stverak added.
He added he is optimistic credit unions have done a good job in educating Congress on the issue, and he credited CU leaders for their grassroots work in contacting their representatives.
150,000 Messages Sent
As part of that educational effort, America’s Credit Unions is reporting that more than 150,000 messages have been sent to representatives as part of its “Don’t Tax My Credit Union” initiative.
ACU Chief Advocacy Officer Carrie Hunt said that total does not include messages sent as part of efforts launched by various state CU associations.
About the CDFI Fund
March 21 was the deadline for Treasury to provide its proposal to the Whtie House for eliminating the CDFI Fund and support for the fund to the “maximum extent of the law.” But what Treasury included in its proposal is unknown, with some in credit unions looking for signs of hope in messages it sent to various organizations, as the CU Daily reported here https://thecudaily.com/cdfis-look-to-white-house-statement-for-hopeful-sign-for-cdfi-fund/
But there was no public statement.
“I think everybody was waiting with anticipation for some sort of public announcement on (March 21)…” said Stverak. I think we’ve all heard and we’ve all seen snippets in the press that somebody may have heard or may have gotten a letter…We’re reserving comment or judgment until we do receive some sort of official statement either from the secretary’s office at the Treasury Department or the White House. We’re cautiously optimistic that Treasury will inform the White House that all the programs are in their statutory authority and they’ll move forward on them.
Don’t Forget
“But remember that the (executive order) had two parts. One was to limit the CDFI program to only statutory program, but then also to begin to pare it down to the most minimal amount necessary to comply with the statute. So, we don’t know what that means.”
DCUC Signs New Member
Separately, the Defense Credit Union Council (DCUC) said it has added Members1st FCU in Enola, Penn. as its newest member.
“We are extremely excited to partner with Tony and his team at DCUC,” Members 1st President and CEO Michael Wilson said in a statement. “Our credit union’s roots are military in origin, and we are eager to work with DCUC in providing the best possible support to the active duty and veteran community. (DCUC President) Tony (Hernandez) has a wonderful team, and their tireless and timely approach to advocacy is both needed and appreciated at a critical time where credit unions are under attack by aggressive bank lobby tactics that will harm members, consumers, and small businesses. We applaud DCUC’s steadfast commitment to fighting for what is right for credit unions across this great nation.”
“We are very excited to have Members 1st Federal Credit Union join DCUC,” added Hernandez. “Their dedication to providing exceptional financial services and support to those who have served our nation aligns with DCUC’s mission in representing defense credit unions. We look forward to working together, strengthening our collective impact, and ensuring that military and veteran communities continue to receive the financial resources and advocacy they deserve.”
