June 01, 2023

Debt deal passes House, moves to Senate

US Capitol buildingThe House last night passed the debt ceiling deal 314-117, which would suspend the ceiling through the end of 2024, address work requirements for certain government assistance programs, revise energy project permitting, claw back some COVID relief funds and IRS funding, place spending caps, and restart student loan repayments. It now heads to the Senate for approval.

Of note for credit unions, the legislation does rescind some Emergency Capital Investment Program (ECIP) funds; however, the provision would reclaim unawarded funds, so institutions that have been selected for awards but not yet received funding are expected to still receive those funds.

Treasury Secretary Janet Yellen has indicated that, without legislative action to address the ceiling, the U.S. would hit its debt limit June 5 and begin defaulting on loans shortly thereafter. The Senate is expected to pass the bill and give President Joe Biden time to enact the bill before that deadline.

NAFCU will continue to closely monitor the legislative process. The association consistently warns lawmakers against inaction on issues that must be addressed to ensure certainty for consumers and credit unions and continuity in federal programs. The association will continue to engage with lawmakers and regulators on credit union priorities.