Currently, Congress is in a flurry of activity as it considers several important pieces of legislation, including the budget reconciliation bill, which will determine whether or not credit unions get to keep their tax-exempt status. Along with the budget bill, there are a few key policies that credit union advocacy organizations are keeping a close eye on, all in various stages of the legal process.

So, today, let’s summarize a few of those bills, how they relate to credit unions, and what their future may look like.

The budget bill

At the top of the list is the One Big Beautiful Bill, which has been the subject of credit union advocacy for the last few months, as organizations like America’s Credit Unions rallied and campaigned to ensure the bill would not propose changes to the credit union tax-exemption.

Last month, the bill successfully passed the House without any such provisions, causing much celebration amongst the industry. However, as the bill has moved to the Senate for review and changes, there is still an opportunity for the removal of tax exemption to be added. To keep advocacy efforts strong throughout the process, America’s Credit Unions joined with every credit union league across the country to send a joint letter to the Senate on this issue.

The letter stated that “Any effort to change the tax status of credit unions as part of this reconciliation bill would be Congress doubling down for big banks while increasing taxes on 142 million Americans who are credit union members.”

The GENIUS Act

Currently under consideration in the Senate, the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act would introduce a regulatory framework for this cryptocurrency in the US. Credit union advocacy groups are in strong support of the bill, with Jim Nussle, President and CEO of America’s Credit Unions, writing, “The credit union movement recognizes the growing need for digital asset services and advocates for policies that allow credit unions to responsibly offer these services while safeguarding member interests.”

However, as the bill has progressed, amendments have been proposed that ACU strongly opposes, including caps on credit card interest rates and changes to interchange fees. America’s Credit Unions has dubbed both of these as “poison pill” amendments and has actively campaigned against these amendments and for the passing of a “clean” version of the bill.

The debate over these amendments is still ongoing.

Other legislation

The following three bills, the Homebuyers Privacy Protection Act, the Digital Asset Market Clarity (CLARITY) Act, and the Advancing the Mentor-Protégé Program for Small Financial Institutions Act, are currently (as in, today) undergoing markup in the House Financial Services Committee.

This morning, America’s Credit Unions put forward a statement in support of the bills, citing that they will aid credit unions in meeting the needs of their members. Though still in the early stages and perhaps not quite as pressing as the previous two bills, these pieces of legislation could have strong impacts on credit unions.

As noted by ACU, the bills would specifically:

• “Curtail the abuse of mortgage trigger leads that have impacted homebuyers and credit union members nationwide, while narrowly preserving them for legitimate, transparent, and accountable uses. America’s Credit Unions also joined a coalition of financial and housing organizations in a joint letter of support;
• Create a regulatory framework for digital assets and ensure stablecoins cannot be treated as a credit union or bank deposit. It makes clear credit unions that offer custody or safekeeping services for digital assets are not required to hold assets held in custody as liabilities on their balance sheet. America’s Credit Unions suggests additional affirmative language clarifying custodial authority for credit unions;
• Codify the Treasury’s mentorship program pairing small and rural financial institutions with larger ones.”

The markup on these bills will be ongoing throughout the day. Any changes proposed will hopefully be public this week.