President Donald Trump signed the government funding package Friday, avoiding a government shutdown by funding the federal government to Sept. 30, 2020. The two bill package also contains funding for several credit union priorities and report language CUNA and the Leagues strongly support.
CUNA President/CEO Jim Nussle wrote House and Senate leadership expressing support for the package.
Specifically, the funding agreement passed contains two bills that together cover all 12 appropriations bills. The package includes several tax provisions, including one repealing the 21% unrelated business income tax (UBIT) on certain employee fringe benefits. CUNA and the Leagues have pushed for the repeal of UBIT since it was enacted in the Tax Cuts and Jobs Act of 2017.
Other tax provisions of interest to credit unions include:
Credit union funds addressed in the package include:
Report language in the legislation includes a section directing federal financial regulators to conduct a study on the need, if any, for changes to regulatory capital requirements necessitated by the current expected credit loss (CECL) standard, to be submitted within 270 days.
Additional details on the funding package can be found at CUNA’s Removing Barriers Blog.