WASHINGTON— Credit union trade groups said Monday they are preparing for a crowded and potentially volatile week on Capitol Hill, with the House expected to take up the Senate-passed budget resolution, lawmakers facing a deadline to renew or temporarily extend Section 702 of the Foreign Intelligence Surveillance Act, continued pressure around Department of Homeland Security funding, and early maneuvering on possibly another round of reconciliation—all while the industry remains alert to any threat to the credit union tax exemption.
Jason Stverak, chief advocacy officer at the Defense Credit Union Council, called the week “an incredibly stressful week and busy week” legislatively, saying several major issues are colliding at once. He pointed to the April 30 deadline on Section 702, House leaders’ push to move the farm bill, the House’s need to act on what he called “reconciliation 2.0,” and Speaker Mike Johnson’s plans to begin shaping “reconciliation 3.0.”
Stverak said DCUC will be focused on ensuring the credit union tax exemption is “not on the menu” as lawmakers look for spending cuts or offsets to fund future priorities.
America’s Credit Unions similarly said the House’s first order of business is expected to be the Senate-passed budget resolution, with the House Rules Committee meeting Monday to tee up a floor vote later this week. ACU said the package remains narrowly tailored to homeland security and judiciary matters and does not include tax provisions, a structure the trade group supports and is working to preserve as the measure moves through the House.
Greg Mesack, ACU senior vice president for advocacy, said leadership appears likely to keep the bill under a closed rule and avoid amendments, which he said would help keep Congress on an accelerated path toward completing the broader reconciliation process by June 1.
Beyond the floor fight, both trades said they are watching the House Financial Services Committee, which is set to hold a hearing Tuesday focused largely on bank capital.
Mesack said ACU intends to use that opportunity to press for a comparable review of credit union capital standards by NCUA, arguing the framework should be revisited to ensure it remains properly calibrated to risk without unnecessarily constraining member access to credit. He also noted the Independent Community Bankers of America’s Washington Summit is this week, with ACU planning to counter the event by engaging lawmakers with data underscoring the “credit union difference.”
In advance of the ICBA’s visit to D.C. this week, DCUC sent a letter to House and Senate leadership urging congressional leaders to reject sweeping policy proposals targeting the credit union charter, tax status, and service model.
Stverak added DCUC is also tracking growing expectations that the Senate Banking Committee could soon move on Kevin Warsh’s nomination to replace Jerome Powell as Federal Reserve chair.