WASHINGTON— As the Senate prepared Wednesday to vote on amendments to its FY2026 budget resolution, America’s Credit Unions urged lawmakers to reject any proposal that would weaken the credit union tax exemption, warning such a move would undercut credit unions’ ability to help consumers manage rising affordability pressures.
In a letter sent ahead of the expected floor votes, ACU President/CEO Scott Simpson thanked Senate leaders for advancing a budget framework that does not target credit unions’ tax status, while pressing the chamber to keep it that way as the amendment process unfolds. Simpson argued preserving the exemption is essential to protecting the industry’s ability to return value to members through lower-cost loans, better deposit rates and reduced fees.
“During the depths of the Great Depression, when banks and savings associations were closing across the country, Congress passed the Federal Credit Union Act to charter federal credit unions, not-for profit financial cooperatives that provide safe, affordable financial services products," Simpson said. "Credit unions were created with a tax-exempt status to serve those left behind by banks, who decided that serving working class Americans was not profitable nor worth their time. By every account, this legislation has been an unparalleled success. By providing safe, affordable financial service products, credit unions are an economic catalyst. In 2025 alone, credit unions generated $352 billion in economic output, supported 1.3 million jobs, and generated $40 billion in tax revenue, all while lowering everyday costs and improving access to the financial needs of hard-working American families.”
Simpson outlined how credit unions remain mission-focused and champions for consumers.
“Credit unions take their tax status seriously and use it to help improve the financial well being of the over 146 million Americans who are credit union members. Credit unions delivered an estimated total of $42 billion in financial benefits in 2025 for American consumers, nearly 17 times the amount of the cost of their federal tax subsidy," he said.