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The Maine Legislature kicked off its 2026 legislative session this week, and with it comes a busy year for issues impacting credit unions and their members. Here’s a quick look at what’s on the horizon.
Key Priorities
The League is focused on a set of legislative priorities that guide our advocacy work in Augusta and Washington, D.C. These priorities ensure credit unions have a strong voice on issues that affect operations, compliance, and member service. While this is not a comprehensive list, and we may engage on additional issues as they arise, these provide a snapshot of our focus areas for the year.
Tracking Legislation
To make it easy to follow bills that matter most, the League has launched a live bill tracker that will be updated throughout the session.
Federal Highlights
Pennies – After all leagues signed on to a letter to the Federal Reserve on December 11 seeking greater guidance regarding the cessation of penny production, the Treasury Department issued some guidance later that month (found here). It notes that “Consumers may continue to deposit pennies at their financial institutions.” Our League, along with America’s Credit Unions, believes, more guidance is needed.
Our industry supports the bipartisan Common Cents Act, which provides a clear, uniform national rounding standard. We also request:
- The Federal Reserve maintain access to coin depots, provide inventory updates, and prevent regional disparities as supplies shrink.
- Clear, coordinated guidance on acceptable rounding approaches and what to do when exact change is not available.
- Regulators provide timely interim guidance that promotes consistent implementation and reduces compliance uncertainty.
IRS Auto Loan Interest Proposed Rule – H.R. 1 – This legislation, signed into law last July, creates a temporary federal income tax deduction for interest on certain passenger vehicle loans for tax years 2025–2028 and establishes new reporting requirements for credit unions.
Following America’s Credit Unions’ and multiple leagues’ request for clarity, the Internal Revenue Service will publish a proposed rule on auto loan interest deduction provisions in H.R. 1. The proposal will clarify who must report deductible auto-loan interest and reduce duplicate reporting in indirect/assigned-loan structures. The IRS is hosting a public hearing regarding their proposal on February 24. Credit unions may submit public comment on the rules by February 2.
State Update
As of January 1, 2026, Maine law increases the statutory definition of a “small claim” from $6,000 to $10,000, exclusive of any interest and court costs. It should be noted that anything involving real estate titles are still excluded from small claims.