WASHINGTON—The Defense Credit Union Council sent a letter Monday to leaders of the House Ways and means Committee as it begins to mark up the budget bill.
DCUC urged the Committee to preserve the federal tax exemption for credit unions as it begins its work this week. The trade group also sent a similar letter to leaders of the Senate Finance Committee.
"Preserving the credit union tax exemption is not a special favor — it’s an investment in the financial well-being of millions of Americans," said Anthony Hernandez, DCUC president/CEO. "The cost of eliminating this exemption would be devastating for consumers, small businesses, and our nation's servicemembers."
“This tax-exempt status is a vital component of our nation’s financial system and enables credit unions to fulfill their congressional mandate of promoting thrift and financial well-being among their member-owners,” wrote DCUC Chief Advocacy Officer Jason Stverak. “Unlike for-profit banks, credit unions are not-for-profit cooperatives; they reinvest earnings into their members and communities rather than paying out dividends to stockholders.”
Stverak pointed out this cooperative structure – recognized by Congress since the Federal Credit Union Act of 1934 – is the very reason credit unions were granted tax-exempt status in the first place.
“And it remains every bit as relevant today,” he wrote. “Maintaining this status is not a special favor; it is an investment in the financial health of millions of everyday Americans and the communities they live in.”
Stverak outlined the benefits credit unions provide to their members and communities, and the broader economic impact of the tax exemption.
Monday morning DCUC communicated with every member of Congress about the need to protect the credit union tax status, and sent out other letters to Congressional leaders. The trade group also held a town hall discussion with U.S. House Majority Whip Tom Emmer, which offered DCUC members and Defense Matters 2025 attendees an opportunity to hear directly from a key leader on issues impacting credit unions and the broader financial services industry.