WASHINGTON–With the giant budget reconciliation bill passed by the Senate, thanks to a tie-breaking vote from Vice President JD Vance, credit unions are taking something of a victory lap after it passed with no language directly related to credit unions or the CU tax exemption.
“Our strategy has been successful as credit unions were able to stay clear of the bill from a tax standpoint,” said America’s Credit Unions President and CEO Jim Nussle said during a call with the media. “We have been following this bill from the very beginning…and we were at every step in the process. We were able to engage credit union leaders, credit union employees, credit union members, community leaders, to help support the credit union tax status as part of the union difference and the difference that credit unions make in the lives of members as well as in the lives of our communities.
‘You’ll Hear From Us’
“We were able to withstand a lot of pressure to look for offsetting changes in the tax code,” Nussle continued. “All along the process credit unions stayed engaged and put forward a very positive message, as well as a negative and very political message about ‘Don’t Tax My Credit Union.’ Otherwise, you you’ll hear from us.”
Debate Begins Today
With President Trump having set a July 4 deadline for the bill—although the president has recently expressed some flexibility around the timing—Nussle, a former member of the House himself, said the next 24-48 hours will be critical.
The House will begin debate and discussion at 9 a.m. Wednesday morning.
DCUC Urges House to Protect Exemption
With the legislation back before the House, the Defense Credit Union Council (DCUC) has sent a letter to Speaker Mike Johnson (R-LA) and House Minority Leader Hakeem Jeffries (D-NY) urging them to preserve the federal tax-exempt status of credit unions.
DCUC noted it represents more than 200-member credit unions serving more than 40 million members worldwide.
A ‘Direct Hit’
“Taxing credit unions would be a direct hit on the financial readiness of our nation’s military,” Anthony Hernandez, DCUC President and CEO, said in a statement. “Credit unions operate on bases, offer specialized support, and stand in where for-profit banks will not. Congress has long recognized this essential role, and we urge the House to uphold that legacy.”
“From day one, DCUC has been vigilant in defending the credit union tax exemption,” added Jason Stverak, DCUC’s chief advocacy officer, in a statement. “We’ve submitted over 30 letters to Congressional leaders this year alone, and we will continue to fight to ensure that the communities we serve are not harmed by misguided policy shifts.”
Raising Costs
DCUC noted its letter further emphasizes that removing the exemption would raise costs for millions of credit union members, reduce services in military communities, and undermine financial access for those who serve our country.
