WASHINGTON– The Defense Credit Union Council has requested a meeting with members of the House Ways and Means Committee to discuss the “critical” importance of maintaining credit unions' federal tax-exempt status.
In a letter sent to every committee member's office, DCUC Chief Advocacy Officer Jason Stverak emphasized how the exemption is not a special privilege but a recognition of credit unions' not-for-profit, member-owned structure.
“Credit unions, including those serving military and underserved communities both stateside and overseas, have provided significant economic benefits to these populations for close to a decade,” DCUC said.
“Congress has consistently recognized the unique role of credit unions. The Credit Union Membership Access Act (CUMAA) of 1998 reaffirmed their tax-exempt status, and recent bipartisan efforts continue to oppose taxation attempts due to the overwhelming consumer benefits they provide,” said Stverak. “Given the vital role credit unions have in supporting military families and underserved communities, DCUC strongly urges the lawmakers to oppose any efforts to remove or diminish this long-supported regulation. The consequences will undoubtedly bleed over into local economies and communities, impacting the financial choice and support for service members, veterans, and working-class Americans.”
Stverak emphasized how credit unions, unlike large for-profit banks, continue to operate from their not-for-profit structure, focusing on member benefits rather than shareholder profits. This distinction has led Congress to repeatedly reaffirm their tax-exempt status under the Federal Credit Union Act of 1934 and subsequent legislation.
Separately, DCUC sent letters to leaders of the House Financial Services and House Ways and Means Committees sharing the same message about the importance of maintaining the CU tax break.