Let’s be honest: following proposed federal legislation can be daunting with twists and turns. However, it’s worth tuning in regarding laws that could reshape how your credit union serves you In this episode of Headlines and Fine Print, PACU President & CEO Dion Williams breaks down two key pieces of legislation: the “Big Beautiful Bill” and where it stands today, as well as a lesser-known but no less important piece of legislation, the Genius Act.

The “Big Beautiful Bill”

In a previous Headlines and Fine Print episode, Dion did an overview of the bill and how it could potentially remove the federal corporate income tax exemption from credit unions and the #DontTaxMyCreditUnion movement.

The tax exemption has been preserved from the Ways and Means Committee, and the final House bill was passed and sent to the Senate.

But don’t celebrate just yet.

“Although we value the progress made, our fight continues,” Dion states. “The Senate can modify the bill before its passage. After that, the discrepancies between the House and Senate versions will be resolved in a conference between the two chambers, leading to a final bill.”

In other words, the exemption is safe for now, but the finish line for the legislation is a ways away.

The Genius Act

At first glance, while the headline of the Genius Act seems to be about cryptocurrency, the act’s fine print reveals something bigger: a proposal to add the Credit Card Competition Act to this bill.

Dion states, “The language used in credit card competition is detrimental to consumers and financial institutions.” He goes on to clarify, “Approximately 10 years ago, legislation was passed concerning debit card interchange fees. These fees apply each time you use your card. The Durbin Amendment set limits on these fees.”

While merchants claim that savings from capped fees would trickle down to consumers, a Federal Reserve Bank of Richmond study found that never happened.

Some lawmakers want to apply similar restrictions on credit card interchange fees.

What will happen if this succeeds? Merchants will not pass on the savings to consumers. They will continue to oppose efforts to enforce stricter data security standards. Lastly, consumers will likely see rewards programs altered or eliminated.

So who wins here? Not you.

Next Steps

Right now, the best offense for credit unions is having a good defense. The support from the #DontTaxMyCreditUnion movement has been thus far successful. Still, the work is not finished. If we are genuinely committed to protecting everyday consumers, local small businesses and the communities we are honored to serve, we must keep making our concerns heard.

If this topic piqued your interest, Headlines and Fine Print is where we unpack these big topics so they make sense. Catch up on the episodes on our Spotify and YouTube.