WASHINGTON— America’s Credit Unions on Wednesday sharpened its ICBA fly-in message, with President/CEO Scott Simpson using a published letter to the editor to argue community bankers are resisting legislation that would strengthen deposit insurance protections for business payroll accounts because it would place credit unions on equal footing with banks.
In the letter in American Banker, written in response to a recent community banker op-ed, Simpson pushed back on claims that the Main Street Depositor Protection Act would unfairly benefit credit unions, arguing the real objection is not to higher coverage or the bill’s focus on payroll accounts, but to credit unions receiving the same level of protection already available to banks. He also challenged bankers on deposit insurance funding, suggesting that if they are concerned about fairness they should support reforms requiring community banks to “pay their fair share” for FDIC coverage, similar to how credit unions contribute evenly to their own insurance fund.
Simpson further argued that opposition to the bill overlooks its stated purpose of protecting worker payroll, bolstering financial stability and supporting small and midsize businesses, including many that are credit union members. The broadside comes as ICBA members gather in Washington this week for their annual Capitol Hill advocacy meetings, where the credit union tax exemption and other competitive issues are expected to be front and center.
Separately, Simpson also sent a letter to House leadership urging lawmakers to reject any tax-related amendments as they consider the Senate-passed budget resolution, warning that such changes would force the measure back to the Senate. In the letter, he again defended the credit union tax status, writing that credit unions generated $352 billion in economic output in 2025, supported 1.3 million jobs and produced $40 billion in tax revenue while delivering safe, affordable financial services.
America’s Credit Unions said Simpson’s letter also emphasized that credit unions delivered roughly $42 billion in member financial benefits in 2025—nearly 17 times the estimated $2.8 billion “cost” of the tax exemption projected by the Joint Committee on Taxation for 2026—and argued that credit unions continue to justify that status by focusing on households and offering lower loan rates, higher savings yields and lower fees than other financial institutions.