WASHINGTON–With both houses of Congress in session this week—but the House’s August recess rapidly approaching–credit unions are expressing some relief after the House Budget Committee on Thursday advanced a fiscal year 2027 budget resolution focused on military spending, elections, and food supply, with no language related to tax issues.
“America’s Credit Unions, Leagues, and credit unions have successfully kept the credit union tax status secure through previous budget reconciliation efforts, including last year’s campaign that saw more than 861,000 contacts with offices in support of the not-for-profit status,” America’s Credit Unions said in a statement.
As the CU Daily previously reported, the trade group has also launched its “Once Upon an American Dream,” which it describes as a national policymaker campaign that targets federal policymakers with a “sustained message on the economic role credit unions play in American communities.”
Support Expressed for ALFA
Separately, America’s Credit Unions said that as Congress debates provisions in the reconciliation legislation, it is expressing support for the bipartisan American Lending Fairness Act (ALFA), which would make a “critical, narrow change” to the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). As the CU Daily reported earlier, the credit union trade groups have shared their support for the bill by joining other organizations in a joint letter to Senate Banking Committee and House Financial Services Committee leadership.
ALFA clarifies the appropriate, limited scope of DIDMCA’s opt-out provision and preserves DIDMCA’s intent of parity amongst all lending institutions.
America’s Credit Unions noted it had previously filed an amicus brief with the U.S. Court of Appeals for the 10th Circuit in June, noting DIDMCA text specifically omits any mention of a borrower’s location, as Congress intended that a loan is only “made” in the state where lending functions are performed. The brief was filed in National Association of Industrial Bankers v. Wieser, which concerns the state of Colorado opting out of DIDMCA in 2023.
The Schedule
The House is scheduled to begin its August recess on July 23. The Senate recess begins August 7. Among other issues credit unions are watching is the Senate vote approving John Crews to join the NCUA board.
