The U.S. Senate passed the tax reform bill, also known as the “big beautiful” budget reconciliation bill, by a vote of 51-50, with Vice President JD Vance breaking the tie on Tuesday. Republican Senators Susan Collins (Maine), Thom Tillis (North Carolina) and Rand Paul (Kentucky) voted against the bill, with all Democrats voting “no” as well.

The California Credit Union League and Nevada’s Credit Unions have consistently engaged with senators to protect the credit union tax model.

In California:

• Credit union advocates sent nearly 300,000 messages to Washington, D.C. to support the preservation of the credit union tax status.
• As part of the “Don’t Tax My Credit Union” campaign, Senators Adam Schiff and Alex Padilla each received over 100,000 messages to protect the credit union tax exemption.
• Leaders from the credit union movement met with staff from Padilla and Schiff’s offices, highlighting the credit union difference with CEOs representing diverse credit union asset sizes.
• Senior Vice President of Federal Government Affairs Stephanie Cuevas flew to Washington, D.C. seven times to meet with legislators, including multiple face-to-face discussions with Senator Padilla and Senator Schiff.
• One major win from this level of advocacy resulted in Padilla introducing an amendment to support the preservation of the credit union tax status.

In Nevada:

• Credit union advocates sent nearly 3,500 messages to Washington, D.C. to support the preservation of the credit union tax status.
• As part of the “Don’t Tax My Credit Union” campaign, Senators Catherine Cortez Masto and Jacky Rosen each received nearly 1,200 messages to protect the credit union tax exemption.
• Leaders from the credit union movement met with Rosen and Cortez Masto, highlighting the credit union difference with CEOs representing diverse credit union asset sizes.
• Senior Vice President of Federal Government Affairs Stephanie Cuevas flew to Washington, D.C. multiple times to meet with legislators and staff.

What’s next? The U.S. House will vote on the Senate’s revisions. If the final package is approved, the bill will go to President Donald Trump’s desk for signature. The goal is to have a bill to President Trump by July 4.

What’s in the nearly 1,000-page bill? The bill aims to make permanent Trump-era tax cuts, raise state and local tax (SALT) deductions (capped at $40,000 and phased out by income), introduce new deductions for tipped and overtime income, increase the child tax credit (adjusted to inflation), and extend a debt ceiling hike of $5 trillion. It includes significant allocations for border security and defense funding. It also mandates new work requirements for Medicaid that may cut billions from the program due to unenrollment.

Given the political complexity of the bill, the California Credit Union League and Nevada’s Credit Unions will continue to monitor the bill’s progress and engage credit union leaders should any changes to the credit union tax exemption arise. An update will be provided after H.R. 1 passes the congressional finish line and is sent to Trump’s desk for signature.

For any questions, please do not hesitate to email Stephanie Cuevas.