PALM DESERT, Calif.—Despite mounting pressure from bank lobbyists and renewed threats to the credit union tax exemption, Washington credit union advocate John McKechnie told attendees at the Defense Credit Union Council’s Annual Conference that he sleeps just fine at night.
Why? Because, he said, he believes in credit unions’ ability to adapt, fight back, and keep putting members first—even in a fast-changing financial and political landscape.
“We got a little reminder in our inboxes yesterday,” McKechnie said, referencing a recent letter from all 52 state banking associations to the Treasury Department demanding yet another study on the credit union tax exemption. “It was an unnecessary reminder. We always knew this was going to be a perennial fight.”
McKechnie, a Capitol Hill veteran who spent nearly two decades leading CUNA’s advocacy efforts before joining NCUA during the financial crisis, brought a mix of humor, history, and hard-earned perspective to the stage at the JW Marriott Desert Springs Resort. He now works as a Washington-based consultant and continues to be a key voice in the credit union movement.
McKechnie didn’t mince words about the latest salvo from the banking industry. He praised DCUC’s rapid response, which pointed out the irony of banks—especially Subchapter S institutions—calling for scrutiny of tax advantages when over 60% of them pay no corporate income tax at all.
“If Treasury wants to study something, maybe they should start there,” he said.
But while the political threats are real, McKechnie reassured attendees that credit unions have been here before—and have come out stronger.
“What keeps me up at night?” he said. “Honestly, not much. I have a lot of faith in this movement. You’ve been through worse, and you’ve adapted every time.”
From Capitol Hill To Credit Union Hill
McKechnie reflected on his decades of work in the credit union system, beginning with his days as a Congressional staffer before joining CUNA in the 1980s.
“I thought I’d stay a couple years,” he said. “Eighteen-and-a-half years later, I finally left. I really got to love the grind and the excitement.”
He described his time at NCUA during the 2008 financial crisis as a formative experience.
“They say experience is the best teacher,” he said, “but I think bad experience is the best teacher. That era taught us a lot about resilience—and made me a better advocate.”
He also gave a nod to his roots in the defense credit union sector, noting that Navy Federal was his first credit union—thanks to his father signing him up at age five.
“Working with DCUC now feels like coming home,” he said.
Evolving Challenges, Enduring Purpose
While fintechs, crypto, and evolving regulatory pressures continue to shift the financial services landscape, McKechnie urged credit unions to stay nimble—and to never forget what sets them apart.
“You’ve never heard me go to Capitol Hill and say, ‘Do this because it’s good for credit unions,’” he said. “I always say, ‘Do this because it’s good for our members.’ That’s what makes us different. That’s what makes us special.”
He praised DCUC’s approach as aggressive, agile, and national in scope—qualities he believes will help not only defense credit unions, but the entire industry.
“The credit union people in this room are among the best advocates in the business,” he said. “You’ve proven again and again that you know how to stand up, fight back, and keep moving forward.”
Despite the persistent attacks from bank lobbyists and the rapidly changing financial services environment, McKechnie’s message was ultimately optimistic.
“There are always going to be people who don’t want us to succeed,” he said. “But we’ve been through evolutions before—and we’ll go through more. And every time, we come out stronger…So, yeah, I sleep pretty well.”