Congressional leaders have signaled potential interest in advancing a budget reconciliation package to fund priorities such as ICE operations, military activity in Iran, and election-related policy changes.
The effort is not expected to directly impact credit unions at this time. However, any reconciliation package could serve as a vehicle for tax policy changes, including potential modifications to the credit union tax exemption. The League and America’s Credit Unions are actively monitoring developments.
America’s Credit Unions will host a webinar on Monday, March 30 at 1 PM PT/4 PM ET to provide additional insight and updates. Register for the webinar here.
While some stakeholders have raised concerns about risks to the credit union tax exemption, the industry has demonstrated strong preparedness in prior legislative cycles.
In 2025, coordinated national advocacy efforts successfully opposed changes to the credit union tax exemption. Credit unions in California and Nevada generated nearly 337,000 messages to Congress; nationwide outreach totaled more than 861,000 messages.
Congressional engagement included:
Budget reconciliation remains a complex and uncertain legislative path. Should proposals emerge that impact the credit union tax exemption, the League is positioned to respond with coordinated advocacy efforts.
For questions, please contact Stephanie Cuevas.
