WASHINGTON, DC (March 26, 2025) |
Early this morning, the Defense Credit Union Council (DCUC) wrote to both the Senate Finance Committee and House Ways and Means Committee leaders, warning that eliminating the historically-recognized credit union tax exemption would significantly harm America’s communities, including service members, veterans, and their families, raising costs, reducing financial services access, and weakening military financial readiness.
DCUC Chief Advocacy Officer Jason Stverak reminded that, unlike banks, credit unions, by both their unique structure and founding missions, reinvest earnings into member benefits such as lower loan rates, higher savings yields, and reduced fees.
Importantly, many credit unions operate on or near military installations, and continue their dedication to ensuring America’s military communities stateside and abroad have access to essential financial services. DCUC highlighted how defense credit unions provide tailored support, including emergency relief loans, financial counseling, and deployment-friendly financial solutions.
"DCUC sees day in-and-out the unwavering commitment credit unions have to their member communities, especially those who serve, or have served to defend our Nation,” says Anthony Hernandez, DCUC President/CEO. “These credit unions—whom we proudly consider part of the defense credit union movement—consistently share their stories of impact, actively engage in our monthly advocacy meetings, and participate in our educational conferences to deepen their dedication and abilities to best serve their members. Altering or revoking this historic tax status of credit unions would severely restrict America’s financial cooperatives from being able to meet their members’ financial needs.”
Removing the credit union tax exemption, DCUC stressed, would essentially function as an effective pay cut for military families, forcing higher loan rates and leading to branch closures on bases. This could push service members and their families toward high-cost alternatives, increasing financial stress and impacting both military financial readiness and retention.
DCUC called on Congress to reaffirm its long-standing bipartisan commitment to credit unions as financial cooperatives, ensuring America’s communities, especially those with military and veteran members, and in rural, remote, or underserved areas, continue receiving access to the financial support and resources they need.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.