WASHINGTON—The Senate began procedural votes on H.R. 1 Sunday and is expected to pass the bill late Monday, according America’s Credit Unions and the Defense Credit Union Council.
Both chambers were scheduled to be on recess this week but remain in Washington in an attempt to meet President Donald Trump’s call for a final bill by July 4.
Once the bill is passed by the Senate, it returns to the House for consideration and Congress must reconcile the chambers’ two bills. The process may extend beyond the president’s July 4 timeline, analysts are projecting.
Both DCUC and ACU emphasized advocacy efforts continue with lawmakers to protect the credit union tax status until the bill is signed by the President.
ACU Chief Advocacy Officer Carrie Hunt said the trade association is now engaging in a “delicate a dance” to make sure the credit union perspective is both being heard and being protected.
“There are some changes (in the Senate bill) that we had flagged previously. For instance, the House version of the bill had an extra 2% added relative to exemption for Subchapter S banks, and that was not included in the Senate provision. We are watching that, as well.
“We've just seen some new language relative to AI,” continued Hunt. “You may recall there was a moratorium on states passing AI legislation coming out of the House version of H.R. 1. The Senate reduced that to a certain window and now there is even further relaxation of that moratorium—and it puts in a standard as to whether or not that moratorium can move forward. We will see what that language looks like in the final version of this legislation as it continues to be considered throughout the day. We do expect some relatively minor language changes.”
Jason Stverak, chief advocacy officer for DCUC, said the trade group has been closely monitoring what is happening in the Senate.
“We have not seen any amendments proposed that would impact the credit union tax status. We're continually pushing members of the Senate to not entertain that idea,” Stverak said. “Obviously, the bill will likely be passed sometime after midnight tonight. So, early Tuesday morning the House will likely be asked to come back in on Wednesday. Either they accept whatever the Senate does or reject it and then go into a conference committee.
Stverak emphasized DCUC has had a constant presence throughout this process to ensure the credit union tax status is not impacted. Stverak added that DCUC is beginning to focus on the National Defense Authorization Act (NDAA).
“We’re officially beginning work on the NDAA,” he said. “This is one of our highest priorities every year and we will be helping to advance defense credit union priorities as part of the legislation.”