WASHINGTON–By a 51-50 vote, with Vice President JD Vance casting the tiebreaker, the Senate has passed its giant reconciliation package. There are no provisions directly related to credit unions, including to the CU tax exemption.
“Nowhere in the bill is there any reference to ‘credit unions’ or ‘federal credit unions.’ There are no proposed changes to the Internal Revenue Code that would affect our status,” Jason Stverak, chief advocacy officer with the Defense Credit Union Council (DCUC) said in a statement.
Added DCUC President and CEO Tony Hernandez in a statement, “This is a significant win for our industry and the millions of Americans we serve. We commend both the House and Senate for recognizing the importance of preserving the federal tax status of credit unions. This decision reaffirms the important role credit unions serve as part of America’s financial ecosystem—especially for our armed forces, their families, and underserved or vulnerable communities.”
Active During Debate
As the CU Daily has been reporting, throughout the budget reconciliation debates, DCUC and America’s Credit Unions were in their advocacy efforts, especially early on when there was some discussion of revoking the credit union tax exemption as one means of offsetting the enormous cost of the legislation.
DCUC noted it was involved in sending more than 30 singular and joint coalition letters to congressional committees and leaders, “elevating the voice of the entire credit union industry, countering misinformation, and defending against attempts to include harmful provisions to this historic policy.”
“We urged lawmakers to stand strong against misguided proposals that would have hurt military families and working Americans, and we’re incredibly grateful that our collective voice was heard,” Stverak said in a statement. “While some uncertainty remains—with both chambers of Congress having passed their own versions of the package and final negotiations still ahead—we will remain vigilant to ensure the credit union tax status is protected and preserved when the final bill reaches the president’s desk.”
Nussle: Thank You to the Senate
“We thank the U.S. Senate for securing the credit union not-for-profit tax status and not adding a new tax on 142 million credit union members as part of H.R. 1,” Jim Nussle, president and CEO of America’s Credit Unions, said in a statement. “Hard working Americans and their communities rely on the competitive rates and personally tailored services offered by credit unions to achieve their American Dream. By preserving the credit union tax status, it provides consumers across the country with more opportunities to achieve financial freedom.”
