WASHINGTON–The American Bankers Association has released a new survey it said found that 67% of U.S. consumers believe Congress should reexamine the tax-exempt status of federal credit unions, while only 14% opposed such a hearing.
In releasing the findings of the survey, which was conducted by Morning Consult, the ABA said it has been two decades since a hearing on the credit union tax exemption has been held.
According to the ABA, findings in the survey include:
- More than three times as many consumers believe credit unions should pay federal taxes “just like banks,” compared to those who feel they should not (58% vs. 18%, respectively).
- Only 17% of Americans are aware that credit unions do not pay federal taxes, while 83% are unaware of credit unions’ tax-exempt status
- By a 5-to-1 margin (64% vs. 13%), consumers believe that credit unions should have the same disclosure and taxation requirements as other tax-exempt organizations.
Related to the latter point, bankers have reportedly been floating around on Capitol Hill a draft letter that letter urges Treasury Secretary Scott Bessent and Treasury to “reconsider” the regulatory exemption that permits Federal credit unions to forgo the disclosure and transparency requirements outlined in Section 6033 of the Internal Revenue Code.
That, in turn, led to pushback by the Defense Credit Union Council, which disputed the claims made in the draft letter.
ABA: ‘Credit Unions Have Prioritized Growth’
“Since Congress last held a hearing on the credit union tax exemption in 2005, many large credit unions have prioritized growth over serving people of modest means connected through a common bond,” ABA President and CEO Rob Nichols said in a statement. “This new survey shows that consumers agree it’s time for Congress to reexamine federal credit unions in the name of greater transparency and accountability, and to ensure credit unions’ activities align with their original Congressionally mandated mission.”
Additional Findings
According to the ABA, the survey reveals how consumers view the regulation of non-banks, including credit unions and fintechs. The findings include:
- 79% care if the business that handles their finances is held to the same legal standard for consumer protection as a bank and the vast majority (90%) “agree that any business providing bank-like services to consumers should be held to the same standards for consumer protection as a bank.”
- “By a decisive 7-to-1 margin, consumers said credit union acquisitions of banks should receive the same level of regulatory scrutiny as bank mergers (68% said they should vs 10% who said they shouldn’t).”
‘Undeniable Demand’
“It is undeniable there is a growing demand – including from regulators and members of Congress – for more transparency and accountability within the credit union sector,” Nichols added in a statement. “A congressional hearing is long overdue and would give credit unions an opportunity to demonstrate how they are meeting their mission.”
Quoting Ronald Reagan
In response to release of the findings, John McKechnie, who advocates on behalf of credit unions on Capitol Hill, observed, “”As Reagan said to Carter in the 1980 presidential debate, ‘well, there you go again.'”
The Full Findings
The ABA said fuller findings in the survey include:
When asked “To the best of your knowledge, which of the following best describes how credit unions pay federal taxes?” consumers provided the following answers:
- Credit unions do not pay federal taxes – 17%
- Credit unions pay federal taxes – 26%
- Don’t Know/No Opinion – 57%
When asked “Knowing what you know about the similarities between credit unions and banks, which of the following comes closest to your view, even if neither is exactly right?” consumers provided the following answers:
- Credit unions should pay federal taxes just like banks – 58%
- Credit unions should not pay federal taxes just like banks– 18%
- Don’t Know/No Opinion – 25%
When asked “It has been 20 years since Congress last held a hearing to conduct oversight of the credit union tax exemption. Do you agree or disagree that Congress should reexamine the tax-exempt status of these financial institutions?” consumers provided the following answers:
- Strongly agree – 28%
- Somewhat agree – 39%
- Somewhat disagree – 9%
- Strongly disagree – 5%
- Don’t Know/No Opinion – 19%
When asked “Do you agree or disagree that federal credit unions should have the same disclosure and taxation requirements as other tax-exempt organizations?” consumers provided the following answers:
- Strongly agree – 29%
- Somewhat agree – 35%
- Somewhat disagree – 9%
- Strongly disagree – 4%
- Don’t know – 24%
When asked “Do you agree or disagree with the following statement? Any business providing bank-like services (i.e. checking and savings accounts, loans, etc.) to consumers should be held to the same standards for consumer protection that banks are,” consumers provided the following answers:
- Strongly agree – 64%
- Somewhat agree – 26%
- Somewhat disagree – 2%
- Strongly disagree – 1%
- Don’t know – 7%
When asked “Which of the following comes closest to your view, even if neither is exactly right?” consumers provided the following answers:
- I care if the business that handles my finances is held to the same legal standard for consumer protection as a bank – 79%
- I don’t care if the business that handles my finances is held to the same legal standard for consumer protection as a bank – 7%
- Don’t Know/No Opinion – 15%
When asked “Knowing what you know about the similarities between credit unions and banks, which of the following comes closest to your view, even if neither is exactly right?” consumers provided the following answers:
- Credit union acquisitions of banks should receive the same level of regulatory scrutiny as bank mergers. – 68%
- Credit union acquisitions of banks should not receive the same level of regulatory scrutiny as bank mergers. – 10%
- Don’t Know/No Opinion – 22%
About the Survey
This poll was conducted by Morning Consult on behalf of the American Bankers Association from October 1-6, 2025, among a national sample of 4,403 adults split into two representative groups for specific question sets. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 1 percentage point.
