A grassroots perspective: Why credit union advocacy matters now more than ever

Grassroots advocacy has long been the foundation of the credit union movement, driving our ability to protect members and serve communities. Today, as we enter a new administration and face new challenges, this advocacy is more critical than ever. Comprehensive tax reform is expected to take center stage—and with it, the potential threat to the federal tax-exempt status that saves credit union members $10 billion annually. This critical exemption allows credit unions to reinvest in their members, translating into better rates, lower fees, and an average savings of $85 per member each year. Losing this exemption would fundamentally alter the mission and effectiveness of credit unions, jeopardizing their ability to serve communities nationwide.

The urgency is clear: we must act now. Policymakers need to understand that taxing credit unions is not a viable option. To lay the groundwork for this critical advocacy effort, CrossState is engaging with key members of the House Ways and Means Committee to emphasize the essential role credit unions play in supporting consumers and communities. In a recent meeting with Rep. Lloyd Smucker (R-PA), leaders from Members 1st Federal Credit Union, Belco Community Credit Union, and CrossState joined forces with America’s Credit Unions to deliver this message—a tangible example of how grassroots advocacy unites us for a common purpose.

One of the most vivid examples of grassroots power came in 2022, when credit union advocates mobilized to block legislation that would have capped debit interchange fees—a measure that threatened to upend the ability to serve members effectively. Through more than 50,000 messages to Congress and countless in-person engagements, the legislation was stopped, and credit unions saved their members millions of dollars annually in potential fees and retained their ability to offer affordable financial services.

This victory was made possible through the coordinated efforts of state and regional leagues, the American Association of Credit Union Leagues (AACUL), America’s Credit Unions legacy organizations, and credit union advocates nationwide, showcasing the collective power of our movement. Similarly, coordinated grassroots efforts have consistently preserved the federal tax-exempt status, saving billions of dollars for members annually while ensuring local economies remain strong.

Data reinforces what we’ve seen in action: personal stories and constituent engagement are the most effective tools for influencing policymakers. A 2023 Congressional Management Foundation study revealed that 85% of congressional staffers say that personalized communication—such as letters, emails, or meetings—drastically impacts their recommendations to lawmakers.

But grassroots advocacy is not just about preventing harmful policies—it’s also a powerful tool for advancing proactive legislation that supports our members and communities. For example, H.R. 507, the Veterans Members Business Loan Act, highlights how credit unions are championing expanded lending opportunities for veteran entrepreneurs. With more than 2.5 million veteran-owned businesses in the United State, and over 20% of transitioning veterans aspiring to start their own businesses, credit unions are uniquely positioned to provide the affordable financing these entrepreneurs need to succeed. This legislation exemplifies how advocacy creates new opportunities to empower members and strengthen communities.

While these victories demonstrate the tangible impact of grassroots advocacy, they also highlight the need for continued vigilance as we address even greater challenges in 2025, including tax reform, fraud prevention, and protecting interchange fees.

Storytelling is essential to grassroots advocacy. Members have experiences that richly capture the positive impact of their credit unions—whether it’s helping a family buy their first home, recover from financial hardship, or plan for a more secure future. When members and staff share their experiences, it builds credibility and resonates with lawmakers on a personal level—highlighting the human element in financial issues and how their decisions affect the lives of real people.

We’ve seen individual stories lead to significant legislative progress, emphasizing their potential to drive change—and underscoring why we prioritize also working closely with AACUL advocacy groups to bring the real-world impact of credit unions into the halls of power.

The challenges facing credit unions this year demand a strong, unified response. Preserving our tax status, preventing expanded liability for fraud, protecting interchange, and seeking effective fraud prevention tools are just some of the critical issues on the table. Policymakers need to hear directly from advocates to fully understand how their decisions impact millions of credit union members across the country.

CrossState’s advocacy efforts are shaped by these priorities, but success depends on activating and uniting voices at every level. We can protect, empower, and advance credit unions when we leverage our collective influence and make it easier than ever for credit union staff and members to get involved in advocacy. To achieve this, CrossState has invested in new tools and resources to simplify the advocacy process and get more people engaged at all levels.

Our new grassroots advocacy platform empowers anyone—whether it’s sharing a personal credit union story, contacting representatives, or joining a campaign—through the collective efforts of CrossState, AACUL, state and regional leagues, America’s Credit Unions, and our system partners. The CrossState Credit Union Advocacy Network (CUAN) will play a key role in mobilizing advocates across Pennsylvania and New Jersey and lead the development of a grassroots advocacy toolkit to equip credit unions of all sizes with resources to connect with lawmakers and inspire members to share their impactful stories.

The stakes for credit unions—and the members and communities they serve—have never been higher. As we face potential challenges of tax reform and other critical policy issues, we need to ignite the power of grassroots advocacy. I encourage everyone to explore opportunities to take action to protect our credit union tax status today. Just as CrossState is here for credit unions in Pennsylvania and New Jersey, the League/Association that serves your state is ready to connect you with your representative and share your personal credit union story, because our voices and stories can make all the difference.

I’m confident in the power of credit unions to rise to the occasion. This isn’t just about protecting what we have today—it’s about creating a stronger foundation for credit unions to continue serving their members and communities for generations to come. With the collective strength of AACUL, state and regional leagues, America’s Credit Unions, and credit union advocates, we can safeguard the financial future of our members and ensure credit unions remain a trusted partner in communities nationwide.