Last week’s unexpected shake-up at the National Credit Union Administration (NCUA) Board signaled a period of uncertainty for the credit union movement. In response, the Defense Credit Union Council (DCUC) immediately convened a powerful, solution-oriented industry-wide meeting—not to panic, but to act.
At stake is more than just regulatory stability.
The growing push to eliminate the federal tax exemption for not-for-profit credit unions represents a seismic shift in public policy—one that would hurt 140 million Americans, particularly those in underserved communities, rural areas, and military families.
Let’s be clear: Credit unions are not tax dodgers. They are member-owned cooperatives that reinvest every dollar earned back into the people and communities they serve. From offering lower rates and fewer fees to being the last financial institution standing in small towns and on military installations, credit unions are not just financial institutions—they are a lifeline.
That’s why DCUC launched its meeting with system partners, leagues, DCUC Military Advocacy Committee members, and strategic partners. The consensus was clear: there needs to be an industry-wide action plan to unite those dedicated to sharing, protecting, and elevating the credit union difference.
The pressing need currently is preserving the tax-exempt status – a steady fight to remind Congress why the credit union tax status was established in the first place, and which reasons for this exemption stand true to this day. This isn’t about defending a tax break. It’s about defending financial access, inclusion, and national readiness.
Consider the facts:
- Credit unions represent just 7% of financial assets in the U.S. yet serve 43% of Americans.
- As not-for-profit financial cooperatives, credit unions return $35 billion in annual consumer benefits, from lower loan rates to higher savings yields.
- 70% of credit union branches are in areas banks have abandoned.
- And for our nation’s military families, defense credit unions provide lifechanging services—from 0% APR emergency loans to in-person support during deployments.
DCUC’s meeting welcomed leaders from across the movement — including representatives from credit union leagues and national trade partners such as National Association of State Credit Union Supervisors (NASCUS), National Association of Credit Union Chairs (NACUC), African-American Credit Union Coalition (AACUC), Allied Solutions, Backbone, and more — for a strategic discussion that wasn’t just a rallying cry, but a detailed roadmap for advocacy.
The need is evident, the credit union story must reach a majority of lawmakers in both the House and Senate to solidify the historic bipartisan support of the credit union tax exemption.
What some call “leveling the playing field” is, in truth, a dangerous misunderstanding of the credit union model. Stripping credit unions of their exemption won’t balance the federal budget—it will dismantle one of the last remaining systems of financial empowerment in this country.
"Targeting the longstanding credit union tax exemption as a means to balance the federal budget would deliver little fiscal return—yet cause significant harm to the financial stability of the very communities credit unions were created to serve, including military families. Lawmakers must fully understand what’s at stake. Changing this decades-backed policy would disrupt access to affordable financial services for hardworking Americans—families striving to make ends meet, veterans launching small businesses, young servicemembers in need of reliable transportation, and first-time homebuyers seeking fair mortgage options. The ripple effects would be felt far and wide, from small towns across the U.S. to military bases around the world,” said Anthony Hernandez, DCUC President/CEO.
"The credit union tax exemption is not a loophole—it’s a principled, bipartisan recognition of a not-for-profit model that delivers real value to everyday Americans, especially servicemembers and veterans. Congress must stand firm in preserving this vital tax status and the communities it supports," said Jason Stverak, DCUC Chief Advocacy Officer.
The credit union tax status is recognition of a mission that has endured for over a century. A mission rooted in community, cooperation, and care.
To the policymakers preparing for tax reform, and to the journalists looking to tell the real story—we urge you to listen. Listen to the military spouse budgeting on a single income. Listen to the veteran starting a small business. Listen to the young-enlisted member trying to build credit or buy their first car.
This is not just a tax policy debate. It’s a human story—with real consequences.
In this critical window of policymaking, every moment counts. The push to safeguard credit unions isn’t just about reacting to threats—it’s about proactively shaping the future we believe in. The choices made now will echo for decades, and active engagement is crucial in driving toward the envisioned state where credit unions can continue to serve those who need them most. We cannot afford silence or inaction—this is the time to stand up, speak out, and make your voice heard.
What You Can Do
Here’s how you can help:
- Contact Your Lawmakers – Reach out to your Congressional representatives. Tell them you support not-for-profit credit unions and want to preserve their tax-exempt status. Use these directories to contact your Senators and Representative(s).
- Share Your Story – How has your credit union made a difference? Post it online, write a letter to your local paper, or speak at a town hall. Send your credit unions’ stories of impact to DCUC at alert@dcuc.org
Stay Informed & Mobilized – Join DCUC and other credit union advocates in staying current with legislative developments. Follow the conversation, attend webinars, and participate in advocacy campaigns. See DCUC’s advocacy one-pagers for top priorities impacting credit unions.
Partner with Us – Media, policy experts, and concerned citizens: we welcome your voices. DCUC is working to connect reporters with credit union leaders and advocacy partners who can bring this issue to life.
The credit union movement is at an inflection point. The decisions made in the coming weeks could reshape the financial landscape for millions of Americans. Let’s make sure that when Congress discusses budget reconciliations and tax reform, they recognize the credit union difference.
DCUC stands ready to be part of the solution. Our door is open. Let’s work together to ensure credit unions can continue to uplift, protect, and serve the people who need them most.
