WASHINGTON— Republicans in Congress are moving toward a potential second budget reconciliation bill as early as this Spring, seeking to advance defense, immigration and other priorities amid ongoing funding disputes, including over funding the Department of Homeland Security, which remains in a partial shutdown that has affected travel across the country.
For credit unions, there are key concerns around what they would like to see in any such bill as well as what they would not.
Sen. Lindsey Graham (R-SC), chairman of the Senate Budget Committee, said the panel will begin work on a new reconciliation package that could include funding for the military and homeland security, as well as elements tied to election policy.
‘Off the Table’
“We have always known that budget reconciliation remained a potential legislative pathway for advancing significant policy changes. We recognize an ever changing funding priority landscape, but looking at credit unions’ tax status as a pay for must be off the table,” Scott Simpson, president and CEO of America’s Credit Unions, said in a statement. “To fund these new priorities off the backs of 145 million credit union members, our teachers, first responders, farmers, and our military men and women, would be irresponsible of Congress. We should not use this moment to take away the economic freedom of everyday Americans who rely on credit unions.
“America’s Credit Unions and the broader credit union industry are prepared to engage. The budget reconciliation pathway is anything but certain, and credit unions are ready to engage. As additional details emerge and the legislative process moves forward, we stand ready to fully mobilize our advocacy efforts.
“Congress is already well aware of our position following recent engagement on these issues, and our perspective will be clear, consistent, and firmly grounded in ensuring consumers maintain access to safe, affordable financial services,” Simpson continued. “We stand ready to work with Congress to ensure this effort delivers real economic benefits for consumers and communities across the country.”
Months of Discussion
A second reconciliation bill has been under discussion for months following passage of a sweeping GOP package in 2025. More recently, the idea has gained urgency as Republicans explore using the process to approve additional defense spending, including funding tied to U.S. operations abroad, and to address border security.
Still, significant hurdles remain. Lawmakers must agree on how to structure the package and offset its costs, and some Republicans have expressed concerns about using reconciliation again so soon.
Democrats are expected to oppose large portions of any GOP-led proposal, particularly provisions related to immigration enforcement (ICE) and voting requirements, raising questions about whether Republicans can unify their narrow majorities to pass the measure.
