A pro-credit union majority in the 119th Congress takes office in the coming days, but with several major challenges looming for Congress, credit union advocacy is as important as ever.
Key provisions of the Tax Cuts and Jobs Act—President Donald Trump’s signature piece of legislation in 2017—are set to expire in 2025. The incoming administration will look to continue many of these tax cuts, while also prioritizing government spending cuts.
This means just about any funding source you can think of will be on the table including the tax treatment of credit unions.
With all this in mind, America’s Credit Unions’ job is to prevent Congress from increasing taxes on more than 140 million credit union members, as the cooperative owners of credit unions as part of any tax cut extension package.
I probably don’t have to tell too many people reading this about the power of the credit union difference, but do all of the people who hold 435 votes in the House and 100 votes in the Senate know that?
Will a majority from both chambers and both parties treat any change to the credit union tax status as a poison pill, an instant “no” vote on the floor?
The future success and relevancy of the credit union movement depends on that answer.
That question is at the center of conversations America’s Credit Unions and state leagues held with policymakers as early tax hearings took place this fall. We repeatedly emphasized how the credit union tax status helps people from all across our country achieve their life goals.
The facts are clear: the credit union tax status is one of the best public policy investments there is. It delivers an approximate 1,300% return on investment on its “cost” of $2.8 billion—bringing $35.9 billion in member and non-member benefits each year.
While protecting the credit union tax status through policy discussions is priority number one next year, we’re also looking to capitalize on the positive economic impact—and bipartisan support—of the credit union difference.
The new Congress and administration are tasked with getting the economy back on track, and credit unions are a ready-made, in-market solution to safe and affordable financial services.
America’s Credit Unions testified before Congress four times in 2024. We highlighted the consumer cost of overregulation, and how right-sizing regulation can create a more inclusive economy. With new committee and subcommittee chairs in place, you can count on us to bring the credit union message in 2025.
We saw dozens of bipartisan credit union bills introduced this Congress, many which passed the House or Senate, or gathered dozens of co-sponsors. That’s progress we’re going to build on in the new Congress to move these issues further. Keeping the credit union tax status off the chopping block means bold, decisive advocacy. The unified voice of the credit union movement is its greatest strength, and together we’ll make the credit union difference something this Congress will not jeopardize.
