WASHINGTON, DC (May 14, 2025) |
The Defense Credit Union Council (DCUC) commends the House Ways and Means Committee for its markup of the tax reconciliation bill, which—thanks to bipartisan diligence—left the federal credit union tax exemption intact. The legislation, with an approval party-line vote of 26-19, now moves to the House Budget Committee to be combined into the full reconciliation package for floor consideration.
“On behalf of America’s defense credit unions and the 40 million members they serve, we thank Chairman Smith, Ranking Member Neal, and the entire committee for rejecting any changes to the historic credit union tax status,” said DCUC President/CEO Anthony Hernandez. “This outcome reflects a clear understanding by lawmakers that credit unions are unique, member owned cooperatives whose tax exemption empowers these institutions to reinvest in America’s communities—delivering lower costs, better rates, and critical financial services to military families. We look forward to working with the Budget Committee and the full House to keep this vital protection in place.”
Since September 2024, DCUC has led an aggressive, multi-channel advocacy effort to defend the credit union tax exemption. These efforts include over 25 letters including a joint trade coalition letter to congressional committees, targeted advertising, geofencing, and video campaigns funded by its Defending Credit Unions National Advocacy Fund, advocacy handouts and panel discussions at DCUC conferences, industry-wide strategic meetings, and coordinated grassroots mobilization with updates and sample letters provided to DCUC’s Military Advocacy Committee.
“By upholding the credit union tax exemption, the House Ways and Means Committee has protected constituents’ wallets and communities. This bipartisan decision safeguards a young family’s chance to afford their first home, a veteran’s ability to start a small business, a retiree’s access to a trusted local financial partner, and a neighborhood’s access to fair, affordable services,” said DCUC Chief Advocacy Officer Jason Stverak. “It reinforces our commitment to institutions that put people over profit and preserves a financial services sector that remains diverse, competitive, and consumer-focused.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.