WASHINGTON—Credit unions’ long, hard tax fight this year is approaching a successful end, as the U.S. Senate passed its budget reconciliation package Tuesday—excluding any provisions to tax credit unions or alter their longstanding federal tax status.
“Nowhere in the bill is there any reference to ‘credit unions’ or ‘federal credit unions.’ There are no proposed changes to the Internal Revenue Code that would affect our status,” said Jason Stverak, DCUC’s chief advocacy officer.
“This is a significant win for our industry and the millions of Americans we serve,” said Anthony Hernandez, DCUC president/CEO. “We commend both the House and Senate for recognizing the importance of preserving the federal tax status of credit unions. This decision reaffirms the important role credit unions serve as part of America’s financial ecosystem—especially for our armed forces, their families, and underserved or vulnerable communities.”
America’s Credit Unions thanked the Senate for securing the credit union not-for-profit tax status and not adding a new tax on 142 million credit union members as part of H.R. 1.
“Hard working Americans and their communities rely on the competitive rates and personally tailored services offered by credit unions to achieve their American Dream,” said ACU President/CEO Jim Nussle. “By preserving the credit union tax status, it provides consumers across the country with more opportunities to achieve financial freedom.”
DCUC added that throughout the budget reconciliation debates it remained proactive in its advocacy efforts, recognizing potential threats nearly a year ago.
“DCUC led a strong response, through over 30 singular and joint coalition letters to Congressional committees and leaders, elevating the voice of the entire credit union industry, countering misinformation, and defending against attempts to include harmful provisions to this historic policy,” DCUC said.
“This victory represents one of the most strategic advocacy campaigns in our history,” said Jack Fallis, DCUC board chairman. “From grassroots efforts to high-level engagement, DCUC led an incredible front across the entire credit union movement. We were on the frontlines from the start, anticipating risks early and leading both the offense and defense to protect our tax status. The entire team, our strategic allies and partners, and our members carried a strong, relentless dedication to preserving, protecting, and championing the credit union mission.”
“We urged lawmakers to stand strong against misguided proposals that would have hurt military families and working Americans, and we’re incredibly grateful that our collective voice was heard,” Stverak added. “While some uncertainty remains—with both chambers of Congress having passed their own versions of the package and final negotiations still ahead—we will remain vigilant to ensure the credit union tax status is protected and preserved when the final bill reaches the President’s desk.”
ACU Actions
America's Credit Unions noted it has been preparing a unified advocacy strategy for tax policy discussions for the past year, recognizing that many of the 2017 Tax Cuts and Jobs Act provisions would expire in 2025.
"America's Credit Unions PAC, in partnership with leagues, identified credit union champions to support during the 2024 election cycle. Following the presidential election, the credit union industry came together to further develop its tax strategy," ACU said.
ACU said that through the Don't Tax My Credit Union campaign, which began laying the groundwork with lawmakers during swearing-in events in January, ACU leagues, and credit unions have:
- Met with Senate Finance Committee Chairman Mike Crapo and Republican committee members
- Met with every Republican member of the House Ways & Means Committee, including Chairman Jason Smith several times
- Met with the White House National Economic Council, Office of Management and Budget, and Treasury Department (6x)
- Met with Senate Majority Leader John Thune, Speaker of the House Mike Johnson, House Majority Leader Steve Scalise, House Financial Services Committee Chairman French Hill
- Contacted all 535 Congressional offices and 100 Senate offices with key data on the credit union difference
- Generated more than 861,000 grassroots letters directly to lawmakers
- Launched digital ad campaign targeting key tax writers and congressional leaders that has generated over 122 million ad impressions and engaged over 180,000 activists
"America's Credit Unions and the credit union industry will continue these unified advocacy efforts to ensure the Trump Administration and lawmakers recognize the value of and secure the credit union tax status in final legislation," ACU added.