WASHINGTON—The top Democrat on the Senate Banking Committee doesn’t appear to share the banking industry’s concerns about the credit union movement’s tax exemption, Punchbowl News reported.
Punchbowl News said it asked Sen. Elizabeth Warren (D-MA) whether there was an argument for removing the tax-exempt status of credit unions over a certain size.
“The progressive Massachusetts Democrat acknowledged the banking industry’s concerns but sounded more preoccupied with the broader economic impacts of bank consolidation,” Punchbowl News said.
“My concern remains over who is going to be there to do small business lending as more and more little banks sell out to the giant banks,” Warren told the news outlet.
As CUToday.info has extensively reported, credit unions in 2025 may be facing a very difficult fight to preserve their tax exemption.
News reports have indicated that ICBA President and CEO Rebeca Romero Rainey is in favor of limiting the tax exemption to credit unions worth less than a billion dollars, rather than advocating for a wholesale end to the tax benefit.