WASHINGTON--The Defense Credit Union Council (DCUC) is stepping up efforts to make Congress aware the CU tax exemption must be preserved.
"DCUC is also actively publishing articles to counter the growing attacks from bank advocates and lobbyists on credit unions' tax-exempt status," DCUC said.
"As the new Congress takes shape and budget reconciliation debates intensify on Capitol Hill, DCUC remains committed to defending the vital role credit unions play in supporting service members, veterans, and their families. DCUC’s latest opinion piece, A Tax on Credit Unions Is a Tax on Our Military, was published this morning at CU Today. This article defends credit unions’ tax-exempt status and their vital support for service members, veterans, and their families amid increasing pressure from bank lobbyists, and in response to the ICBA's new lobbying proposal targeting credit unions with assets over $1 billion.
Separately, DCUC is urging the House Small Business Committee to support the Veterans Member Business Loan Act (VMBL), which would exempt veteran business loans from the 12.25% lending cap.
This move would enhance access to capital for veteran-owned businesses without taxpayer cost, fostering economic growth and job creation, and allowing credit unions to better serve these communities, DCUC stated in its letter to the Committee.
Also, in addressing financial security and debanking concerns, DCUC has reached out to the House Financial Services Committee (HFSC) and House Oversight and Investigations Subcommittee. DCUC's letter to these groups share concerns about debanking—where financial institutions unfairly restrict services, disproportionately affecting veterans and small businesses. DCUC emphasized the critical role credit unions play in ensuring financial inclusion and stability.