By Scott Simpson
In his State of the Union address on February 24, President Donald Trump is expected to focus on the economy and helping families feeling stretched despite the improved inflation and jobs picture. As Washington talks about “affordability,” a champion is sitting right under of our noses: America's 4,500 credit unions, serving 145 million households nationwide.
Credit unions are looking to President Trump to further outline and accelerate his pro-growth economic agenda, opening the door for these member-owned institutions to bring that vision to life. While credit unions are already hyper-focused on increasing affordability, with the right policy environment, they can better protect and empower working families, advance access to affordable credit, and support small businesses, helping translate national economic growth into lasting prosperity in communities across the country that other financial institutions can’t or won’t support.
A 2025 study found that credit union rates on savings, checking, money market, and retirement accounts were 66 to 87% higher than those of banks. The reason is simple: Credit unions return their profits to members rather than to Wall Street as banks do. Mortgage rates were 7% lower, and car loans were 32% lower. Overall, credit unions save consumers about $16 billion annually.
No wonder credit unions enjoy a 73% favorable rating compared to 56% for large national banks, according to a survey last fall. Our localized, personalized “people serving people” mission allows credit unions to focus on helping members make their money work harder and go farther.
That’s why credit unions want to hear more about the President’s proposed Trump Accounts, which offer eligible children a $1,000 federal contribution invested in a stock market index fund. Families can add up to $5,000 each year, and the funds will stay invested and grow through compound interest until the children turn 18. At that point, they can use the money for education, to buy a home, or to start a business.
For generations, credit unions have helped families save, plan, and invest in the future through youth savings accounts, custodial accounts, and other long-term financial tools. Trump accounts should be no different.
On another front, we also hope to hear more about the President's call on Congress to cap credit card rates. Here again, credit unions already offer an affordability solution with some of the lowest credit card rates in the marketplace, roughly half the average APR charged by other issuers. For credit unions, the average rate for basic cards is below 13% compared to the bank average of 16%.
When it comes to increasing affordability for American consumers, credit unions recommend targeted, data-driven solutions such as supporting financial education and budgeting resources, expanding access to nonprofit debt counseling, encouraging refinancing options for high-interest debt, and increasing the availability of lower-rate credit choices. Solutions already offered by credit unions.
Credit unions stand ready to hear how President Trump will advance his pro-growth economic agenda, and, more importantly, how it will translate into real opportunity for American families. As member-owned, not-for-profit cooperatives, credit unions are uniquely positioned to turn economic growth into tangible financial security. Credit unions will continue their work expanding access to affordable credit, strengthening household resilience, and driving prosperity in communities nationwide. Because when credit unions thrive, working families thrive, and that’s an outcome worth championing.
Scott Simpson is President and CEO of America's Credit Unions.