WASHINGTON--America’s Credit Unions President and CEO Scott Simpson said Monday that while congressional Republicans are exploring a second budget reconciliation package, significant political and procedural hurdles remain.
America’s Credit Unions convened its membership Monday to discuss the outlook of a second budget reconciliation measure and what it could mean for credit unions. ACU shared a recap of what was discussed:
Reconciliation Outlook Remains Muddy
Speaking during the briefing, Simpson pointed to recent comments from Senate Budget Committee Chairman Lindsey Graham indicating interest in advancing a second reconciliation bill focused on military readiness and homeland security.
At the same time, key House leaders have expressed skepticism about the feasibility of moving another package. House Ways and Means Committee Chairman Jason Smith said any reconciliation effort could include tax provisions but questioned whether a second bill is realistic. House Financial Services Committee Chairman French Hill signaled general support while noting limited opportunities for spending reductions within his committee’s jurisdiction.
Simpson said these dynamics, combined with narrow margins in Congress and competing legislative priorities, make the path forward uncertain.
Election-Year Pressures Complicate Path Forward
Simpson noted that reconciliation efforts unfolding during an election year could further constrain lawmakers, as members weigh politically sensitive votes.
Additional policy priorities, including proposals such as the SAVE Act, could also complicate efforts to assemble a consensus package.
Credit Union Industry Prepared To Defend Tax Status
Simpson emphasized that protecting the credit union tax status is the top priority for America's Credit Unions.
“This is engagement that is ongoing and continuous. It’s true of all the government affairs professionals across our system. We constantly are engaging on protection of the tax status, and most policymakers, if they’ve been in office more than a year, have heard from us on this issue. So, they’re tuned up for it, and it works,” Simpson said.
He added that policymakers are familiar with the industry’s position and the role credit unions play in supporting consumers and local economies. Simpson said America’s Credit Unions and leagues are "relentless" in the system’s unified advocacy to preserve the industry’s tax status and are ready to mobilize advocates should the threat evolve.
Targeted Advocacy Underway
While reconciliation remains a potential legislative vehicle, Simpson said key procedural steps required to advance a package have not yet materialized.
America’s Credit Unions and state leagues are continuing targeted engagement with congressional offices while preparing for broader advocacy efforts if necessary.
“We have a responsibility to give the best information that we can. At this moment, we need to be careful and reserved but really prepared for the moment we need to move. We’ve been to this rodeo with this Congress. They know where we stand on this issue. We are not starting at ground zero,” said Simpson.
Shutdown Adds To Legislative Uncertainty
Simpson also pointed to the ongoing partial government shutdown as an additional complicating factor.
Following disagreement between the House and Senate over funding for the Department of Homeland Security, the shutdown has extended to record length, adding uncertainty for lawmakers and financial strain for affected workers.
Credit unions, Simpson noted, are continuing to provide support and relief to members impacted by the disruption.
Continued Engagement with Lawmakers
Simpson said America’s Credit Unions is and will remain closely engaged with policymakers and continue coordinating with state leagues to ensure lawmakers understand the importance of preserving the credit union tax structure.