By Jason Stverak
When the House Ways and Means Committee released its long-awaited tax package this week, there was a notable—and welcome—omission. Not one word about credit unions. Not a single reference to our longstanding federal tax exemption. No new Unrelated Business Income Tax (UBIT) provisions. No veiled threats to 501(c)(14) status. No attacks on NCUA oversight or regulatory authority. On its face, the 389-page bill offers no direct harm to the credit union model.
That’s worth recognizing. But it’s not worth relaxing.
Because let’s be honest: we are not out of the woods. We are not at the end of this legislative fight—we are at the beginning.
The legislative process is dynamic, and tax policy is particularly prone to last-minute maneuvering, backroom amendments, and sudden shifts in direction. What isn’t in Monday’s draft could easily be inserted tomorrow. And we know from experience that the banking lobby is relentless in its pursuit of provisions that undermine credit unions under the guise of “reform.” We’ve seen this strategy play out across state legislatures, in regulatory agencies, and on Capitol Hill.
The fact that we are not mentioned in the current tax package is a credit to the intensity and coordination of our advocacy efforts. But this moment must not become an excuse for self-congratulation—it must become a launchpad for strategic focus. If anything, the silence in the bill underscores the importance of sustained, united advocacy.
This is where the Defense Credit Union Council (DCUC) steps in.
As the only national trade association solely focused on defending the financial interests of service members, veterans, and their families through credit union advocacy, DCUC is proud to stand shoulder to shoulder with our industry allies. Over the past year, we’ve ramped up our efforts on Capitol Hill, coordinated national messaging campaigns, empowered local credit union leaders to speak out, and helped spotlight the real-life impact of credit unions on the communities they serve.
That impact is profound.
Unique Financial Stressors
Credit unions, especially those serving the military, are often the only financial institutions offering accessible, low-cost services to families who move every two-three years, face unique financial stressors, and are often targeted by predatory lenders. Defense credit unions offer emergency assistance, education funding, financial literacy, homeownership counseling, and support during deployment cycles. Many of our member institutions operate on military bases—sometimes as the only available full-service financial option.
Yet for all that we do, there are those who would seek to eliminate our federal tax status under the false pretense of “leveling the playing field.” Let’s be clear: this is not about fairness. It’s about eliminating competition.
Banks continue to enjoy significant advantages—access to capital markets, the ability to issue stock, and the use of Subchapter S corporate structures that shield their income from taxes. Many of the same banks calling for credit union taxation pay little to no federal corporate taxes themselves. Some even exploit depreciation and stock buybacks to lower their tax burdens while calling us “free riders.” This hypocrisy should not be rewarded with legislative concessions.
Credit unions are not-for-profit cooperatives owned by their members, not shareholders. Every dollar we earn is reinvested into better rates, lower fees, and improved services. Taxing credit unions wouldn’t just weaken institutions—it would penalize the very members we serve: working families, retirees, active-duty personnel, and veterans. According to the 2025 economic impact study from America’s Credit Unions, taxing credit unions would result in over $30 billion in lost economic activity, including the loss of tens of thousands of jobs and the shuttering of countless community branches. That’s not sound policy—that’s economic sabotage.
This is why we must keep up the pressure.
Now is the time to speak up, not stand down. Now is the time to organize, educate, and advocate. DCUC encourages all credit unions—regardless of asset size, field of membership, or location—to recommit to this fight. Engage your congressional representatives. Submit letters to the editor. Activate your members. Educate your boards. And above all, don’t assume that today’s silence means tomorrow’s safety.
We must be proactive, not reactive. That’s what true leadership requires.
Connective Tissue
At DCUC, we are committed to being the connective tissue that links military-focused credit unions to the broader credit union movement, and to the policymakers who hold our future in their hands. We don’t just represent institutions—we represent the people behind them: the sailors trying to buy their first home, the military spouse starting a business, the veteran seeking financial stability in civilian life. Our mission is rooted in service—and that service must extend to the halls of Congress and beyond.
This moment presents a challenge and an opportunity. We can either wait for the next attack and scramble to respond, or we can use this reprieve to build a stronger, more united front. We choose the latter.
So yes, the absence of harmful language in the current tax bill is a win—but it is not the war. The real victory will come when lawmakers recognize the irreplaceable role credit unions play in building financial resilience, especially for those who sacrifice the most for our country. And that recognition won’t come from silence—it will come from strength, strategy, and speaking up.
DCUC is ready. Let’s move forward—together.
Jason Stverak is Chief Advocacy Officer at the Defense Credit Union Council.