WASHINGTON—Credit unions and trade associations pulling together is what’s needed this year to fend off what appears to be a significant threat to the movement’s tax status, says Jason Stverak, who adds the possibility of CUs losing their tax break in ’25 keeps him up at night.
The Defense Credit Union Council’s Chief Advocacy Officer recognized that preserving the movement’s tax break remains “up in the air.”
“When it comes down to it and Congress says we need $3 billion a year to pay for X, that’s the kind of thing that worries me at 2:00 in the morning,” Stverak said.
As CUToday.info was first to report, credit unions’ tax break is now “on the menu” of items being considered to support the budget reconciliation bill. A document is being circulated among House Republican members that identifies numerous ways the Trump Administration can find money to support the budget reconciliation bill—and the credit union tax exemption is on the paper.
“As Congress later this year looks to close out the budget bill, we want to make sure the writers of any reconciliation package have the information they need they know—the value of the credit union tax exemption has to Main Street and to communities across this country. We want them to know keeping the credit union tax status is more important than any short-term budget gain would have.”
What makes Stverak feel better about the situation today is the effort being made across credit union trade associations, state leagues and CUs.
“I feel better because there is a realization across the credit union community and the industry that this is a very important issue this year that everyone needs to pull together on,” he said. “I'm heartened to see that.”
ACU Actions
Carrie Hunt, America’s Credit Unions chief advocacy officer, said ACU has been paying attention to this new threat for a while.
“Once we started seeing tax discussions happen at the end of last year, and there were whispers on Capitol Hill, we knew that credit unions’ tax exemption would be on the table,” she said. “We also knew credit unions’ tax status would be on the table because our banking friends put us on the table. We have to make sure we are being consistent and constant in talking about the credit union difference and how our tax exemption goes to work every single day and puts value into the economy.
“You certainly will see additional messaging from us,” Hunt continued. “We are about to release an updated version of study that NAFCU did relative to the value of the credit union tax exemption to the economy.”
As CUToday.info reported, America’s Credit Unions has launched its series of digital ads across the country to share the message: Don't Tax My Credit Union.