WASHINGTON—The Defense Credit Union Council (DCUC) has sent a letter to Senators Elizabeth Warren (D-MA) and (R-LA) John Kennedy ahead of the Senate Finance Subcommittee hearing, “Tax Policy in 2025: Implications for the American Economy.”
In the letter, Jason Stverak, DCUC chief advocacy officer, urges the committee to reaffirm the tax-exempt status of credit unions, emphasizing their critical role in supporting local communities, advancing financial inclusion, and driving economic growth.
Stverak reminded that credit unions’ not-for-profit structure allows them to reinvest earnings back into their members, providing essential benefits like better interest rates, lower fees, and greater access to credit.
“This tax exemption is especially vital for defense credit unions, which support military and veteran families through tailored financial services, home loans, and financial readiness programs,” Stverak said.
Steverak outlined the benefits for both individual members and the broader U.S. economy from the preservation of the credit union tax exemption:
Direct Financial Savings to Members: In 2022 alone, credit unions provided an estimated $16 billion in direct financial benefits to over 137 million members nationwide through better interest rates on loans, higher returns on savings, and lower fees compared to for-profit financial institutions.
Access to Affordable Credit: Credit unions prioritize financial inclusion and serve individuals often overlooked by traditional banks. For example, credit unions are twice as likely as banks to approve loans for low-income borrowers, enabling access to vital funds for small businesses, first-time homebuyers, and underserved communities.
Economic Contributions to Local Communities: According to a National Association of Federally-Insured Credit Unions study, credit unions contribute nearly $15 billion annually to the U.S. economy in jobs, taxes paid by employees, and community investments.
Support for Military and Veterans: Defense credit unions play an essential role in supporting service members and their families. Whether it’s providing no-cost financial readiness training, facilitating VA home loans, or offering low-rate personal loans during emergencies, defense credit unions—enabled by their tax-exempt status—remain a cornerstone of financial security for those who serve the nation.