Washington, D.C. (April 28, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the Senate Finance and House Ways and Means Committees, strongly urging lawmakers to preserve the federal tax exemption for credit unions as tax policy discussions ramp up.
In the letter, DCUC shared how the credit union tax exemption is a vital component of the U.S. financial system. DCUC Chief Advocacy Officer Jason Stverak explained how credit unions’ not-for-profit structure enables them to provide lower fees, better rates, and crucial community services, directly benefitting American consumers and the economy.
DCUC warned that eliminating the tax exemption would harm underserved communities, reduce financial services access for military families, cause an estimated $120 billion reduction in U.S. GDP over the next decade, and lead to approximately 800,000 job losses. DCUC also called out the double standard in claims of “fairness,” noting that many for-profit banks already exploit tax loopholes to minimize their corporate tax burdens.
"Preserving the credit union tax exemption is not a special favor — it’s an investment in the financial well-being of millions of Americans," said Anthony Hernandez, DCUC President/CEO. "The cost of eliminating this exemption would be devastating for consumers, small businesses, and our nation's servicemembers."
“Today, as the debate over tax policy in 2025 intensifies, we ask you to stand with the millions of Americans – including our nation’s servicemembers – who depend on credit unions. Just this past month, thousands of credit union leaders from across the country have traveled to Washington, D.C. to personally urge lawmakers to protect credit unions’ ability to serve their communities. The message is resoundingly clear: preserving the credit union tax exemption is essential to financial fairness, economic opportunity, and even our national security. We urge Congress to stand firm in defense of credit unions’ tax-exempt status. The cost of eliminating this exemption is too great – and the harm to those who serve our nation and to families and small businesses in our communities is too severe,” wrote Stverak.
DCUC reaffirmed its commitment to working with Congress to protect the tax-exempt status that allows credit unions to fulfill their public mission and urged lawmakers to reject any proposals that would undermine it.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.