State Budget Update: Key issues impacting credit unions
Published by: Andrew Canan
June 12, 2025 | Political Action
Not only does the state’s biennial operating budget lay out state spending for the next two years, but it also includes several policy decisions that shape the environment in which credit unions operate. That is why the League closely monitors the two-year budget process to ensure state policies allow you to do what you do best: serve your members.
Yesterday afternoon, the Ohio Senate passed Substitute House Bill 96, the state’s operating budget by a vote of 23-10.
Here’s where key issues stand for credit unions:
Financial Literacy
The Senate removed a House-passed provision that would allow schools to waive the financial literacy graduation requirement for students participating in a student-run credit union or bank. This came without explanation or known opposition. Senate Financial Institutions, Insurance, and Technology Committee Chairman Steve Wilson expressed support and pledged to work for its reinstatement. The League has submitted testimony urging the Senate Finance Committee to restore the language.
Private Share Insurance – Technical Fixes
The League proposed clarifications to ORC 1761.10 on behalf of American Share Insurance (ASI) and Excess Share Insurance (ESI), neither of which was included in the Senate’s bill:
SPA Applicability: Clarify that Special Premium Assessments apply only to ASI primary-insured credit unions, not those with excess coverage.
Asset Transfer Authority: Allow ASI to transfer assets to a subsidiary (ESI) or distribute them to participating credit unions upon dissolution.
Earned Wage Access (EWA)
The House-passed budget bill included a provision to regulate Earned Wage Access (EWA). While intended to offer oversight, the language lacked consumer protections and created an uneven regulatory playing field for short-term lending. The Senate removed this provision as well.
Through the legislative process, League staff learned that the Senate believed all three issues should be handled via stand-alone legislation, rather than amendments to the state operating budget.
As the House voted not to concur with the Senate changes, a Conference Committee will reconcile House and Senate differences before the June 30 deadline. The League will be actively monitoring the process and advocating for the most favorable outcomes to benefit Ohio’s credit unions. If the two credit union provisions are not included in the final version of the budget, League staff is prepared to hit the ground with bill introductions on stand-alone legislation.
Contact Andrew Canan for questions or assistance.
