WASHINGTON--As key Republican leaders mull pursuing an additional budget reconciliation effort in the 119th Congress, America’s Credit Unions said it is continuing its advocacy efforts to ensure the credit union tax status remains secure.
In a letter from America’s Credit Unions Tuesday, ACU President/CEO Jim Nussle urged Congressional tax committee leaders to continue to protect credit unions’ tax status if any additional reconciliation package is considered.
Nussle reminded members of Congress:
- Credit unions use the tax status seriously and use it to help more than 144 million members, delivering an estimated $35 billion in financial benefits in 2024 for consumers, compared to the estimated “cost” of $2.6 billion in tax revenue
- Credit unions do not distort competition, despite bank lobbyist claims, as their market share has been below 10% since receiving a federal charter
Before the original budget reconciliation package, the One Big Beautiful Bill (H.R. 1), was signed into law without any mention of credit unions’ tax status, America’s Credit Unions, leagues, and credit unions worked for months to share the Don’t Tax My Credit Union message, ACU said.
Credit union advocates met with all 535 Congressional offices (including the leaders of House and Senate tax-writing committees), generated more than 861,000 grassroots messages to Congress, and launched a digital ad campaign that generated more than 139 million impressions in support of the tax status, ACU added.
As CUToday.info was first to report, the Senate Finance Committee is weighing a second reconciliation package to raise additional revenue—and the American Bankers Association has already met with the Committee, urging lawmakers to eliminate the credit union tax exemption in the measure.