Washington, DC (April 30, 2026) |
Today, America’s Credit Unions President/CEO Scott Simpson published an LTE calling out community bankers’ opposition to deposit insurance reforms for business payroll accounts, which comes ahead of the ICBA fly-in to Washington, D.C.
Below please find highlights from the LTE, as well as from the letter sent to the House today ahead of the budget resolution vote, for your coverage. If you would like to discuss these topics further, please don’t hesitate to contact myself (mgonzalez@americascreditunions.org) or press@americascreditunions.org.
Scott Simpson American Banker Letter-to-the-editor
- Written in response to a recent community banker op-ed that argued the Main Street Depositor Protection Act gave credit unions an unfair advantage.
- “If bankers claim their concern is about unfair advantages within deposit insurance structures, perhaps they would be open to reforms that require community banks to pay their fair share for FDIC coverage, similar to how credit unions pay evenly for their deposit insurance,” Simpson posed.
- “Their opposition to the legislation isn't that it increases the coverage level, nor that it's targeted at business accounts; their opposition stems solely from the fact that credit unions will be given the same deposit insurance coverage level as banks.”“…They don't seem to care that the purpose of the bill is to protect worker payroll, enhance financial stability, and strengthen small and midsize businesses that drive economic growth in communities across the nation, many of whom are credit union members.”
House Budget Resolution Letter
- President/CEO Scott Simpson sent a letter to House Leadership urging them to reject any tax-related amendments as they vote on the Senate-passed budget resolution. The resolution contains no tax-related provisions, and any changes would send the resolution back to the upper chamber.
- “By providing safe, affordable financial service products, credit unions are an economic catalyst. In 2025 alone, credit unions generated $352 billion in economic output, supported 1.3 million jobs, and generated $40 billion in tax revenue, all while lowering everyday costs and improving access to the financial needs of hard-working American families,” Simpson wrote.
- The letter adds credit unions:
- Focus on consumers, as the overwhelming focus of credit unions is on making loans and providing services to American households;
- Delivered approximately $42 billion in financial benefits in 2025, nearly 17 times the “cost” of the tax status (estimated by the Joint Committee on Taxation to be $2.8 billion in 2026);
- Provide lower loan rates, higher savings yields, and lower fees on average than other types of financial institutions, improving consumer affordability in the marketplace; and
- Continue to deliver massive savings and affordable services to consumers, despite a single-digit market share.