WASHINGTON–Credit unions in Washington are paying as much attention as everyone else over whether Congress can reach an agreement on funding the government by Wednesday. While a funding bill is actually needed by Friday night in order to avert a shutdown, Congress is set to adjourn on Wednesday with each party scheduled to attend leadership retreats Thursday and Friday.

House Speaker Mike Johnson (R-LA) has said he will bring a funding bill early this week, but that bill will require negotiations with Democrats if it is to pass.

Jason Stverak, chief advocacy officer with the Defense Credit Union Council, noted last-minute deals have become something of the norm in Congress. 

“We’ve had photo finishes in the past,” he said. “In anticipation of a possible shutdown, we have encouraged (DCUC)  membership to talk to their members on what can be done and what programs available.”
He added defense credit unions are accustomed to “addressing financial stresses in members’ lives.”

The CU Tax Exemption Discussed

All of that comes against a backdrop of discussions in Congress over the credit union tax exemption. As the CU Daily reported earlier, the issue of CU tax status has risen to a higher level. On the House side, members of the Ways & Means Committee met last week to discuss the status of the federal income tax exemption, which has been in place since 1934 and generally considered among the third rails of politics. But now with the Trump tax cuts set to expire and pressure on the deficit, the issue came up, fueled in part, according to reports, by credit union acquisitions of banks.

For that reason, said Stverak, DCUC sent an Action Alert to its member CUs on April 7.

“Obviously, we are working to make sure every member of Congress and their staff are aware of the incredibly negative consequences of what happen to mainstream America if they move forward with this,” he said.