Washington, D.C. (April 30, 2025) |
Today, America’s Credit Unions in alignment with league partners and a dozen other credit union industry associations and service providers joined together to urge Congressional leaders to protect credit unions’ federal income tax status.
“It’s imperative that lawmakers understand the value credit unions bring to ensuring strong economies across the country and our nation’s financial prosperity. The consequences of changing credit unions’ tax status directly contradict the Trump Administration’s economic goals and would add a new tax on 142 million Americans,” said America’s Credit Unions President/CEO Jim Nussle. “America’s Credit Unions, with the state league system as a vital component, is proud of our efforts to showcase the credit union difference and protect credit unions’ tax status.”
America’s Credit Unions, leagues, credit unions, and industry partners have been heavily engaged with lawmakers leading up to this year’s tax fight. America’s Credit Unions began leading strategy discussions last summer as provisions of the 2017 Tax Cuts and Jobs Act are set to expire at the end of this year. Since Jan. 1, America’s Credit Unions, state credit union leagues, and credit unions have:
- Met with the White House National Economic Council, Office of Management and Budget, Treasury Department (4x), Senate Majority Leader John Thune, House Ways and Means Committee Chairman Jason Smith, Senate Finance Committee Chairman Mike Crapo and dozens of other lawmakers and administration officials.
- Contacted all 535 House members ahead of banker fly-ins to set the record straight on potential banker misinformation.
- Hosted Washington, D.C., fly-ins, in coordination with state leagues, for credit union CEOs to meet with 30 key tax writers.
- Commissioned an independent research study on the economic impact of the credit union tax status.
- Generated over 55 million ad impressions and engaged over 100,000 activists through digital advertising.
- Generated 550,000+ grassroots letters.
- Commissioned a POLITICO issue brief, with 12,700 total page views and over 4.8 million impressions.
- Delivered thousands of “Don’t Tax My Credit Union” postcards to lawmakers from constituents.
The joint letter, sent to Senate Majority Leader John Thune, R-S.D., Senate Minority Leader Chuck Schumer, D-N.Y., Speaker of the House Mike Johnson, R-La., and House Minority Leader Hakeem Jeffries, D-N.Y., is the latest example of the credit union industry’s unified advocacy efforts to protect the tax status. It includes data from America’s Credit Unions research and analysis, as well as quotes from an op-ed written by America’s Credit Unions Board Member Brian Schools, president/CEO of Chartway Credit Union (Virginia Beach, Va.).
“This tax exemption is not a special favor – it is a recognition of credit unions’ unique ‘people over profit’ mission and the tremendous value they provide to everyday Americans. Preserving it is vital to ensure we can continue our century-long mission of serving people of small means and strengthening local communities,” the groups wrote.
A few highlights:
- The not-for-profit status, without stockholders demanding profits, results in an estimated $37 billion annually in direct and indirect financial benefits to credit union members – more than 140 million Americans – through lower loan rates, higher savings yields, and reduced fees.
- Credit unions serve rural and underserved communities, military members and veterans, teachers, farmers, first-responders, and others that have been left behind by banks: More than half of all credit unions (about 2,590 institutions) are designated Low-Income Credit Unions, meaning a majority of their members are low-income; these credit unions alone serve 73 million members nationwide. Additionally, 432 credit unions are certified Community Development Financial Institutions, focused on underserved areas and together reaching nearly 20 million Americans.
- Credit unions are built for Main Street, banks are built for Wall Street: Over the past decade, the number of credit unions offering business loans has increased by 20%, with more than 2,000 credit unions now providing small business financing. In fact, since 2007, credit union business lending has tripled, even as banks reduced their small business lending by 8% in that period.
America’s Credit Unions will continue to lead industry efforts to advocate with a unified voice to protect the credit union tax status.