WASHINGTON— With community bankers set to descend on Capitol Hill this week for ICBA’s annual fly-in, America’s Credit Unions defended the credit union tax exemption and pushed back on what it called “tired, unsubstantiated claims” about the industry’s role in the financial marketplace.
In an email sent Tuesday to congressional offices, ACU Chief Advocacy Officer Kathleen Coulombe said more than 146 million Americans rely on credit unions for affordable financial services and argued the industry generated $352 billion in total economic impact over the past year while supporting 1.3 million jobs. Coulombe also said credit unions delivered an estimated $42 billion in financial benefits to consumers last year—nearly 17 times the claimed “cost” of the credit union tax status.
The outreach comes as ICBA prepares to make its annual case on Capitol Hill, where community bankers have repeatedly targeted the credit union tax exemption and accused tax-exempt credit unions of distorting competition, particularly through bank acquisitions.
In her message, Coulombe urged congressional staff to “fact check” those claims, arguing that larger banks—not credit unions—are the primary competitive threat to smaller community banks and that credit unions serve as a market check by offering lower loan rates, higher savings yields and fewer or lower fees.