WASHINGTON–Several letters have been sent to Congress by America’s Credit Unions and CU Strategic Planning addressing the credit union tax exemption and the CDFI Fund, respectively, among other issues.

In its letter to the Senate Committee on Finance, which held a hearing with Treasury Secretary Scott Bessent, America’s Credit Unions again called on the Senate to protect the credit union tax exemption as the so-called “big, beautiful bill” continues to work its way through the upper house. The trade group told the committee the CU tax exemption provides $35 billion in annual benefits for an annual tax expenditure that is under $3 billion.

“While some attack credit union growth, the fact is that the entire industry remains under 10% of total depository institution assets, just as it has for its entire history,” America’s Credit Unions said. “We also believe any oversight of the Treasury Department should ensure that it is also committed to continuing credit unions’ ability to serve their 142 million members by supporting the preservation of the credit union tax status.”

Restore the CDFI Fund

America’s Credit Unions also said the Community Development Financial Institutions (CDFI) Fund “has been a bipartisan cornerstone for expanding access to capital in underserved communities by providing crucial funding and technical assistance that has driven affordable housing, homeownership, small business growth, sustainable job creation, and consumer financial security through powerful public-private partnerships. 

“The CDFI Fund has consistently demonstrated its capacity to serve as a catalyst for private sector investment, with every dollar of public funding leveraged to unlock at least eight dollars in private capital,” the letter continued. “This return on investment is even more impressive with credit union CDFIs, with each dollar awarded resulting in a return of twelve dollars in community lending. This market-driven approach not only accelerates economic growth but also fosters self-reliance and reduces long-term
dependency on government assistance.”

America’s Credit Unions also urged the Senate to protect the independence of NCUA.

CU Strategic Planning Pushes for CDFI Funds Restoration

Separately, CU Strategic Planning has sent a letter to leadership of the Senate’s Financial Services and General Government Subcommittee urging full funding for the CDFI Fund.

The funds help credit unions to “do the most powerful lending to low- to moderate-income consumers,” the company told the Senate.

The Trump administration’s 2026 budget calls for the elimination of nearly all CDFI funds.

“We are very appreciative of U.S. Treasury Secretary’s statements in March following his review of the CDFI Fund that validate the CDFI Fund’s mission, purpose, programs and operations,” CU Strategic Planning said in its letter. “The CDFI Funds full range of programs are an important part of Treasury’s work with financial institutions to continue a strong U.S. economy.”

‘Strong Support’

CU Strategic Planning told Congress it ‘strongly’ supports:

• Full funding for the CDFI Fund in FY 2026 of $330 million. “The CDFI Fund is an important tool for the U.S Treasury to build economic success in every state.”
• Full funding for each CDFI Program. “Following the Treasury Secretary’s assessment that all are grounded in law as required by the President’s Executive Order that call for that review, CDFI credit unions look forward to working with Treasury on core programs such as the Financial Assistance, Technical Assistance, and Small Dollar Loan programs with full funding in FY 2026,” CU Strategic Planning said. “These programs return as investments in all states in rural, suburban and urban areas.”

More Than $1 Billion in Grants

CU Strategic Planning noted it has written more than $1 billion dollars in winning grants for CDFI credit unions to implement all over the nation and has the “ability to help CDFI credit unions get immediate help for low to moderate working families in the form of small consumer loans, auto loans, home mortgages and micro and small business loans.”

The letter was signed by Chief Experience Officer Michael Beall.