WASHINGTON–In response to sources on Capitol Hill telling it a bankers group is now calling for a study of the credit union tax exemption by Congress, the Defense Credit Union Council said it has sent a letter to every congressional office suggesting this is a question that has been asked and answered.
According to the DCUC, the Independent Community Bankers of America have been urging Congress to include language related to a study of the tax exemption in one of the several huge reconciliation bills currently working their way through committees.
The credit union tax exemption has actually been the subject of a government review in the past, and on more than one occasion. That includes a GAO report from 2005 that can be found here.
The request comes a day after it was learned that the Ways & Means Committee has opted to leave the tax exemption untouched in the tax bill it has been marking up.
“This issue has been reviewed and reaffirmed many times by Congress, economists, and regulatory agencies. Yet some continue to call for redundant studies that do nothing to improve consumer access or community outcomes,” DCUC said. “Credit unions—particularly those serving our nation’s military and veterans—remain essential, community-focused institutions that reinvest in people, not shareholders.”
More Than ‘Justified’
The DCUC letter outlines why the credit union tax status is “not only justified, but a proven engine for economic stability, inclusion, and local empowerment”
It also references the latest 2025 economic study it said “demonstrates the immense value credit unions provide to their members and communities.”
“Calls to revisit this well-settled issue through a formal ‘study’ are politically motivated distractions that detract from the real needs of American consumers. Rather than duplicating work that has already been conducted extensively, we should focus on modernizing our financial system to ensure it works for all Americans,” the letter reads.
