Other proposals include HB 1089, which would authorize the legislature to limit property tax levies imposed by cities and counties; SB 1082, the Right to Work Amendment, which would prohibit labor union membership from being required as a condition of employment; and SB 1081, the Right to Farm Act, which would reaffirm that regulatory authority over agriculture-related issues rests with the legislature.

HB 443 proposes changes to the process for filling vacancies in Council of State offices. Under the proposal, political parties would submit a list of nominees for the governor to consider when appointing replacements.

Another proposed amendment, HB 144, would revise the structure of the State Board of Education. The measure would make the superintendent of public instruction chair of the board and establish a process for electing remaining board members by district.

Legislative activity slowed this week because of the shortened holiday schedule, but the General Assembly is expected to resume regular activity the week of June 1. The League will continue monitoring legislative developments and updating members on relevant legislation.

HB 87, known as the Educational Choice for Children Act, expands access to Opportunity Scholarships that help families cover tuition and other expenses associated with eligible private schools. Supporters say the legislation increases educational options for families, while opponents have raised concerns about the use of public funds for private education. This measure remains part of broader policy discussions that could impact household financial planning and community investment across the state.

The legislation was vetoed in August 2025. Representatives Carla Cunningham and Nasif Majeed, who recently changed their party affiliation to unaffiliated, joined Republicans in support of the override vote.

The measure now moves to the Senate, where Republicans hold a veto-proof majority, for further consideration.

CUBMA would reduce the required number of annual board meetings for federally chartered credit unions from 12 to six, providing institutions with additional operational flexibility while maintaining oversight standards.

The legislation previously passed the House earlier this Congress as standalone legislation under H.R. 975. Its inclusion in the broader housing and regulatory relief package is expected to improve its prospects in the Senate.

Because the House amended the Senate version of the legislation, the package must return to the Senate for further consideration before it can become law.

Introduced by Rep. William Timmons (R, SC-04), the legislation seeks to reduce duplicative compliance requirements while maintaining appropriate regulatory oversight. The Carolinas Credit Union League worked closely with Rep. Timmons during development of the bill, providing insight into the exam challenges facing credit unions and the need for a more tailored, risk-based approach.

If enacted, the SMART Act would allow credit unions to redirect more time and resources toward serving members, expanding lending and supporting local communities.

Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011 after being appointed by President George W. Bush. Before joining the Fed, Warsh worked at Morgan Stanley and later served as a White House economic advisor.

During his time at the Federal Reserve, he was involved in the agency’s response to the 2008 financial crisis. Since leaving the Fed, Warsh has worked in academia and the private sector, including roles with investment firms and policy organizations.

The legislation would create a federal framework for digital assets by clarifying regulatory authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission, while establishing rules related to consumer protection, cybersecurity and stablecoins.

According to America’s Credit Unions, the bill also includes provisions intended to ensure credit unions are not excluded from participating in digital asset activities as federal rules are developed, helping provide regulatory clarity and parity with other financial institutions.

The markup included consideration of numerous amendments and input from industry and banking stakeholders, with supporters citing the need for clearer rules for governing digital asset markets.

The 2026 PAC Blitz campaign kicks off July 8 and will run through Dec. 8, with a goal of raising $10,000 in contributions for state-level credit union political action committees. The campaign is one of a few ways the Capital Club raises funds to support ongoing advocacy efforts on behalf of Carolinas credit unions.

Participants will be able to donate online in support of their preferred collegiate team, fueling a lighthearted dual-state competition. The winning side will earn a Carolinas Credit Union League–directed donation to a nonprofit of its choice, equal to half of the total amount raised, up to $1,500.

First introduced with a soft launch last year, PAC Blitz builds on that foundation in 2026. Teasing this year’s matchup, state PAC trustees Chris Angel of Mountain Credit Union and Chris Terlinden of Palmetto Citizens Federal Credit Union appear in a lighthearted video highlighting the “Best Carolina” — and the broader benefits of a strong PAC for credit union advocacy.

More details will be shared in the weeks ahead as the campaign officially kicks off.

The framework includes an average teacher pay raise of about 8%, along with bonuses for educators ranging from $1,000 to $2,000. Many state employees across different positions would also receive pay increases averaging roughly 3%.

In addition, the proposal continues the phased reduction of the state personal income tax rate, lowering it to 3.49% for 2027 through 2029, 3.34% for 2030 through 2032 and 2.99% for 2033 through 2034. After 2034, two additional cuts would eventually bring the rate to 2.49%.

The budget would also include a constitutional amendment on the November general election ballot that would allow the legislature to cap property tax increases by cities and counties. In keeping with the personal income tax cuts included in the proposal, voters would also be asked to lower the state's constitutional income tax cap from 7% to 3.5%.

The Carolinas Credit Union League will continue monitoring budget developments closely and will keep members informed of any provisions relevant to credit unions or the broader financial services industry.

Crews currently serves at the U.S. Treasury Department and previously held senior policy roles with House Majority Leader Steve Scalise, the Senate Banking Committee, and the National Economic Council.

If confirmed by the U.S. Senate, Crews would succeed current NCUA Chairman Kyle Hauptman, whose six-year term expired in August 2025.

The discussion centers on whether to restructure the current congressional map, which gives Republicans a 6-1 advantage in the state’s U.S. House delegation. One proposal would involve breaking apart Democratic Rep. Jim Clyburn’s majority-Black 6th District and redistributing those voters into surrounding districts currently held by Republicans.

To preserve the option of taking up redistricting later this year, the South Carolina House voted to extend its sine die adjournment date, allowing lawmakers to return after the regular session ends if leadership chooses to revisit the issue.

The effort faces uncertainty in the Senate, where several Republican senators, including members of leadership, have raised concerns about potential legal challenges and the possibility of weakening Republican-leaning districts.

If lawmakers approve a new congressional map, it could shift South Carolina’s delegation to a 7-0 Republican advantage. Any plan would likely face immediate court challenges. There is a possibility that if both bodies decide to advance this bill it could affect the timeframe for the primary and general elections this summer and fall.

The CCUL Advocacy team is monitoring developments related to this issue.

The legislation would establish a federal framework for digital assets by clarifying when cryptocurrencies fall under regulation by the Securities and Exchange Commission versus the Commodity Futures Trading Commission. It would also create registration, disclosure, and consumer protection requirements for digital asset platforms and exchanges.

Supporters argue the bill would provide long-needed regulatory clarity for the cryptocurrency industry, while critics contend it could weaken oversight and increase risk within the broader financial system.

House consideration of SMART Act

The bipartisan SMART Act from Rep. William Timmons (R, SC-04) — a measure supported by the Carolinas Credit Union League — is expected to receive House consideration under suspension of the rules this week, a process typically reserved for legislation with broad support.

The bill would provide regulatory relief for certain well-managed and well-capitalized community banks and credit unions by allowing streamlined examinations and reducing duplicative regulatory reviews. Supporters say the measure would ease compliance burdens and allow institutions to devote more resources to local lending and community investment.

The SMART Act advanced overwhelmingly through the House Financial Services Committee and aligns with broader efforts to reduce regulatory pressure on smaller financial institutions.

This annual advocacy event provides a prime opportunity for credit union professionals and volunteers to meet directly with members of Congress and their staff, share the credit union difference and discuss key legislative priorities impacting the movement.

Online registration is open through September 4, 2026, and hotel reservations must be made by August 21.

Attendees will stay at the Canopy by Hilton at The Wharf, located at 975 7th Street SW, Washington, D.C. The room rate is $359 per night (single occupancy, plus taxes). Reservations can be made by calling 202-488-2500 and referencing the “Carolinas Credit Union League.”

The agenda begins Tuesday, September 15, with a briefing, welcome remarks and lunch, followed by Senate member meetings and a group dinner. On Wednesday, September 16, participants will travel to Capitol Hill Club for breakfast before heading to the House office buildings for a full day of meetings.

For additional details and to register, visit carolinasleague.org/hike-the-hill.

Senate President Pro Tempore Phil Berger filed Senate Bill 889, titled Property Tax Reappraisal Moratorium, which would temporarily pause the implementation of county property tax reappraisals scheduled for 2026 and instead delay updated valuations until 2027.

Supporters say the delay would provide lawmakers with additional time to consider broader property tax reform amid rising property values across the state.

This week, legislative activity is expected to shift toward broader statewide policy discussions, with voting sessions scheduled in both chambers on Tuesday and Wednesday.

The Carolinas Credit Union League is continuing to monitor committee activity and floor action on issues relevant to credit unions and the financial services industry and will keep members informed as developments occur.

N.C. State House Day connects legislators with credit union leaders serving more than 5.7 million North Carolinians

Raleigh, NC – Credit union leaders from across North Carolina gathered in Raleigh on April 29, 2026, for State House Day, the Carolinas Credit Union League’s opportunity to connect lawmakers and staff with the cooperative financial institutions serving communities statewide. More than 50 attendees, including League representatives, met with elected officials to share how credit unions support working families, small businesses, and local economies—and to discuss priorities shaping the future of member-owned finance in North Carolina.

Hosted by the Carolinas Credit Union League (CCUL), the event brought together CEOs and senior leaders for a full day of engagement at the North Carolina General Assembly. The discussions focused on strengthening partnerships with policymakers and highlighting how credit unions deliver safe, affordable financial services to members in every corner of the state.

“For our first North Carolina State House Day, we made a point to show up and engage in Raleigh, recognizing that the conversations happening here play just as meaningful a role in shaping our movement as those in Washington,” said CCUL Chief Advocacy Officer Billy Boylston.

Champions of proposed legislation to modernize North Carolina’s state credit union charter—Reps. Julia Howard (R, NC-Dist. 77) and Jennifer Balkcom (R, NC-Dist. 117)—were among the elected officials who greeted participants during the legislative briefing hosted at Civic Federal Credit Union’s Quorum Center. Balkcom, who has worked in the credit union industry, spoke from firsthand experience about the credit union difference. Howard, the lead co-sponsor of the charter modernization proposal, has a long history of support for the industry. State Sen. Mike Lazzara (R, NC-Dist. 06), a vocal credit union supporter in the Senate, and State Treasurer Brad Briner, a leading voice on financial stewardship and economic stability, also shared remarks with attendees.

Among the top issues discussed in meetings with officials was the need to update the state credit union charter so cooperative financial institutions can more readily serve people in rural communities and financial deserts. Credit union leaders emphasized that modernizing the charter would help ensure more North Carolinians can access responsible, relationship-based financial services, especially in areas where choices are limited.

CCUL organized the day’s schedule of briefings and lawmaker meetings to help legislators connect directly with the credit union leaders serving their districts. Credit unions in North Carolina are not-for-profit, member-owned financial cooperatives, and together they serve more than 5.7 million North Carolinians.

“People at banks have a job. You have a mission,” Howard said when speaking to event participants.

Briner noted the role credit unions play in serving North Carolinians statewide. “We are often referred to as the bank of the state, but as you well know, we are not the bank but the credit union of the state.”

“We’re grateful to the elected officials who took the time to meet with us and to the credit unions who showed up and made the day a success,” added Boylston.

More than 50 people attended the event, representing: Acclaim Federal Credit Union, Allegacy Financial, Bragg Mutual Federal Credit Union, Carolinas Credit Union League, Champion Credit Union, Coastal Credit Union, ElecTel Cooperative Federal Credit Union, First Flight Federal Credit Union, Marine Federal Credit Union, Members Credit Union, Piedmont Advantage Credit Union, REV Federal Credit Union, Skyla Credit Union, State Employees’ Credit Union, Summit Credit Union, Telco Community Credit Union, and Truliant Federal Credit Union.

CCUL will continue convening credit union leaders and policymakers to discuss priorities impacting access to affordable financial services, including efforts to modernize the North Carolina credit union charter to better meet the needs of underserved communities.

Last week, the Carolinas Credit Union League hosted its inaugural North Carolina State House Day, bringing credit union leaders from across the state to Raleigh to engage directly with legislators.

The event opened with remarks from state leaders and supporters of the credit union movement, including Rep. Jennifer Balkcom, Rep. Julia Howard, Sen. Michael Lazzara, and State Treasurer Brad Briner.

Throughout the day, participants met with members of the General Assembly and legislative staff to share the credit union story, highlight the impact credit unions have in their communities, and discuss policy priorities affecting the industry.

The event provided an opportunity to strengthen existing relationships and establish new connections with lawmakers as the short session begins. Advocates shared perspectives on financial services issues and emphasized the importance of ensuring legislative decisions reflect the needs of credit union members across North Carolina.

The League thanked attendees for their participation and looks forward to building on the momentum in future advocacy efforts.

Despite the heavy attention on local issues, the state budget remains a major issue as both chambers continue working to reach a compromise on a final spending plan. Tax reduction triggers remain a key point of disagreement, with the House advocating for delays and the Senate maintaining that it intends to uphold previously agreed-upon reductions.

The Holder Rule (16 C.F.R. Part 433) requires consumer credit contracts in seller-arranged financing transactions to include a notice preserving a consumer’s right to assert claims and defenses against the holder of the contract.

In January 2022, the FTC issued an advisory opinion stating that the Holder Rule’s limitation on liability does not apply to attorneys’ fees and costs awarded under independent state law.

According to the letter, the advisory opinion exposes credit unions acting as holders to potential liability that may exceed the original loan amount, largely due to attorneys’ fees stemming from seller misconduct outside the credit union’s control.

The letter is available here.

Congress approved and enacted a funding bill for the Department of Homeland Security, ending a partial shutdown. Debate over immigration enforcement funding, however, was deferred for future action.

Lawmakers also approved a short-term, 45-day extension of Section 702 of the Foreign Intelligence Surveillance Act (FISA), allowing the program to continue while negotiations over long-term reforms remain ongoing.

In the House, members advanced, but did not finalize a new farm bill and adopted a budget framework aimed at increasing immigration enforcement funding. Both measures now await further action in the Senate.

During the recess, lawmakers are expected to focus on district-level engagement and stakeholder outreach while negotiations continue behind the scenes on surveillance reform, immigration funding, and broader budget priorities.

When Congress returns, attention is expected to shift back to resolving these outstanding issues, along with potential movement on appropriations and other must-pass legislation.

Early budget discussions appeared productive, though disagreements remain around personal income tax policy, with legislative leadership expressing a goal of reaching a final agreement before adjournment.

Two new members were sworn in to fill vacancies in the House and Senate:

• Rep. Anna Ferguson, (R-N.C., Dist. 119) replaced Rep. Mike Clampitt, who died in March.
• Sen. Jonah Garson, (D- N.C., Dist. 23), replaced Sen. Graig Meyer, who resigned to become executive director of the North Carolina Justice Center.

The League is closely monitoring legislation to track any financial services bills that may be filed and remains engaged with key legislative stakeholders on issues related to its member credit unions.

The webinar, titled “2026 Midterm Elections: Stakes and Winning Strategies,” will feature America’s Credit Unions President and CEO Scott F. Simpson and Head of Political Affairs Trey Hawkins.

America’s Credit Unions sent registration details directly to eligible participants.

For questions about the webinar or 2026 midterm elections strategy, reach out to Carolinas Credit Union League’s Nate Lane at nlane@carolinasleague.org.

The reconciliation process now moves to the House, where Republican leaders face the challenge of uniting their caucus ahead of an expected vote later this week before an upcoming recess. Some House Republicans are pushing to add other priorities to the package.

The Carolinas Credit Union League will continue to urge lawmakers to keep tax issues out of reconciliation. Meanwhile, GOP leadership is discussing a possible “Reconciliation 3.0” package to address additional priorities while advancing the current measure.

While short sessions typically end by July 4, several major issues expected to dominate the agenda could lead to a more compressed timeline. The state budget is expected to be lawmakers’ top priority. North Carolina did not pass a full budget during the 2025 long session, leaving legislators to address funding for the 2025-26 biennium.

Lawmakers are also expected to debate upcoming tax reduction triggers. The corporate income tax rate is currently 2%, the lowest in the nation, and is scheduled to phase down to zero. Legislators will need to determine whether to maintain the current trigger structure or modify the planned reductions.

As the session begins, the Carolinas Credit Union League will continue monitoring the status of the Credit Union State Charter Modernization language, which remains in conference committee and is eligible for consideration during the short session.

The League will continue providing updates on legislative developments impacting credit unions and the broader financial services industry.

In the House, several broadband deployment bills are scheduled for consideration under suspension of the rules and through the regular legislative process. Meanwhile, the Senate is expected to vote on nominations and begin consideration of the budget reconciliation process.

Senate work turns to next budget reconciliation package

Senate Budget Chairman Lindsey Graham (R-S.C.) is expected to release instructions for a second budget reconciliation package that would provide roughly $75 billion in funding for Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection.

Senators remain divided on whether to keep the proposal narrowly focused or expand it, as some Republicans view reconciliation as one of the final opportunities to advance major priorities to the president without needing bipartisan support.

Some members have urged leadership to broaden the package, while Senate Majority Whip John Thune (R-S.D.) has pushed to keep the measure limited to avoid identifying additional funding offsets. The Senate could vote as early as this week to begin debate on the proposal.

Currently, there is no indication that the package includes provisions affecting credit union taxation. However, some lawmakers anticipate Congress could pursue a third reconciliation bill later this year with a broader scope.

Recent primary elections and leadership changes in the Senate also continue to shape the political landscape heading into the 2027 long session. Several incumbency upsets across the state have prompted members to begin positioning themselves for both policy influence and leadership roles. Discussions around committee assignments and chamber priorities are ongoing and are expected to play a key role in determining how legislation advances during the short session and into the long session as new lawmakers join both chambers.

As lawmakers prepare to reconvene, the Carolinas Credit Union League remains engaged with key legislators and stakeholders to help ensure credit union priorities are well-positioned heading into the session. The League will continue monitoring developments and will keep members informed as legislative activity increases in the coming weeks.

Online registration is available through September 4, 2026, with hotel reservations due by August 21, 2026.

This year’s accommodations will be at the Canopy by Hilton at The Wharf, offering views of the Potomac River and convenient access to event activities. The room rate is $359 per night (single occupancy, plus taxes). Attendees can book by calling 202-488-2500 and referencing the “Carolinas Credit Union League,” or reserve online through the event page.

The agenda will begin Tuesday, September 15, with a Hike the Hill briefing, welcome remarks and lunch, followed by scheduled Senate meetings in the afternoon and a group dinner that evening. On Wednesday, September 16, participants will depart for Capitol Hill Club for breakfast before heading to the House office buildings for a full day of House meetings.

For more information and to register, visit carolinasleague.org/hike-the-hill.