Midterm elections yield gains for credit unions

Credit unions took initiative this election to support the people and policies that will continue to back credit union growth. According to CUNA CEO and President, Jim Nussle, credit unions invested $7 million in 338 different candidates during the 2018 midterm elections, which is the biggest contribution made by credit unions to date. These efforts helped elect a CU-friendly majority in Congress, and while this will help to advance some policy, other decisions will likely remain gridlocked. Here’s the impact credit unions can expect after a tumultuous 2018 midterm election.

A controversial issue that has been considered for the past several years is a new credit union taxation bill that would increase taxes by about $2 billion per year, which members and credit union leaders have vocally opposed. However, in light of the midterm elections, the likelihood of this bill getting pushed through Congress is minuscule. Now that the United States is back to a bipartisan Congress with different parties leading the House and Senate, the probability of a credit union tax bill reaching the floor is unlikely. It might be safe to say that credit unions will retain tax exemption for the next 2 years until the next general election rolls around.

The incoming Financial Services Chairman Maxine Waters is a controversial figure in the financial industry, although, she is known to be a supporter of credit unions. She has expressed that not-for-profit organizations like credit unions should be seriously considered for tax exemption. However, banks are less likely to support her policy that would increase regulations on larger financial institutions.


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