WASHINGTON—Credit unions may have dodged a bullet in the budget reconciliation bill signed by President Trump, but the reprieve could be short-lived.
Sources have informed CUToday.info the Senate Finance Committee is weighing a second reconciliation package to raise additional revenue—and that the American Bankers Association has already met with the Committee, urging lawmakers to eliminate the credit union tax exemption in the measure.
“The banking lobby seems to be dusting off the rejected and failed idea to tax credit unions, and now if rumors are to be believed, they’re shopping it to members of the Senate for inclusion in any proposed reconciliation bill,” said Defense Credit Union Council Chief Advocacy Officer Jason Stverak.
“Let’s be clear: this isn’t about fairness or the deficit—it’s about eliminating competition so banks can raise fees and reduce service,” Stverak said. “Credit unions are not-for-profit, member-owned cooperatives that return billions every year in direct benefits to their members, including millions of military families.”
Stverak said taxing credit unions would hit working families the hardest, while banks themselves exploit Subchapter S to avoid billions in taxes annually.
“If the bankers want to talk tax fairness, they should start with their own loopholes before attacking the institutions that serve everyday Americans,” Stverak said. “While others have taken a victory lap, DCUC has remained laser focused on protecting the tax status of all credit unions.”
ACU's Position
Americas Credit Unions President and CEO Jim Nussle pointed to ACU's success in keeping credit unions out of the reconciliation bill signed by Trump.
“America’s Credit Unions and our league partners led the successful ‘Don’t Tax My Credit Union’ campaign in 2025, protecting our tax status against the most serious threat in decades. We mobilized credit unions, leagues, and members nationwide — and we won," Nussle said. "If the Senate considers another reconciliation package, we will, as always, keep our members fully informed, provide timely updates, and equip them with the facts they need to understand what’s at stake. Together with our league partners, our focus is on clear communication and steady leadership — not on creating unnecessary alarm.
"We continue to work tirelessly on behalf of 144 million members to ensure policymakers understand that credit unions are the backbone of our economy — creating opportunities for Main Street America while banks create opportunities for themselves," Nussle continued. "Just as we have for the last 90 years, America’s Credit Unions and the leagues will be with our members every step of the way, leading the fight to protect our mission today, tomorrow, and into the future.”
CUToday.info requested comment from both the Senate Finance Committee and the ABA, but neither responded by press time.