WASHINGTON—The Independent Community Bankers of America (ICBA) will be hosting its annual Capital Summit this week in Washington, with credit unions sending letters to Congress and reaching out to congressional offices ahead of time seeking to head off the anti-CU arguments that are certain to be made.
During a call with the media, the CU Daily asked Jason Stverak, chief advocacy officer with the Defense Credit Union Council, whether the visits by bankers have an effect and what, if anything, credit unions hear when the ICBA representatives go home.
“It kind of depends upon the office,” Stverak responded. “I can give you two perspectives, both from being it on the other side in working for a member of the House and in in the U.S. Senate. If there’s an issue the member is interested in, there can be follow up. Most likely it’s kind of, ‘Thank you, we’ll pass it along. The worry is that if there is a charge left unanswered or a question not anticipated, it takes just one member to start asking, ‘Why shouldn’t we tax credit unions, etc.? Why do we have an NCAA and an FDIC and an OCC? We do get outreach asking questions. What we hope to do is to answer them in advance.”
Letter Sent Ahead of Visitors
In seeking to do just that, DCUC has sent a letter in which it cited the most recent data from NCUA, stating that federally insured credit unions serve 144.7 million members nationwide, maintaining a strong 11.26% net-worth ratio, with 2,390 low-income-designated institutions.
DCUC further
- Noted the numbers above represent a majority of the system that expands access to grants, supplemental capital, and member business lending flexibility.
- Highlighted that credit unions serving military communities alone serve more than 40 million member-owners and manage over $525 billion in assets, operating under a statutory mandate to meet the financial needs of servicemembers, veterans, and their families.
Recognized in Statute
“Congress has long recognized in statute that credit unions are member-owned, democratically governed, not-for-profit cooperatives designed to meet the credit and savings needs of consumers—especially those of modest means,” Jason Stverak wrote in the letter. “Proposals to impose charter-wide tax changes or arbitrary asset thresholds are inconsistent with that legal framework and risk undermining institutions that deliver measurable consumer benefit.”
A Rebuttal
DCUC said the letter seeks to directly rebut recent ICBA claims on three principal policy fronts:
- Tax Treatment: DCUC reiterated that federal tax exemption is grounded in law, including the Credit Union Membership Access Act and Section 501(c)(1) of the Internal Revenue Code, and does not vary by asset size. NCUA and IRS interpretations affirm that credit unions’ not-for-profit, cooperative structure—not scale—determines their tax status.
- Bank Acquisition Transparency: Citing NCUA’s formal memorandum to Congress, DCUC stated that credit union acquisitions of banks are “explicitly authorized,” subject to arm’s-length negotiation, and reviewed against rigorous legal, valuation, and safety-and-soundness standards; also confirms coordination with the FDIC and state regulators to ensure continuity of deposit insurance. DCUC maintains that any congressional interest in this area should be limited to transaction-level disclosure enhancements, not charter-wide restrictions.
- Supervision and Accountability: DCUC shared that credit unions operate under a distinct statutory and regulatory framework, separate from bank-specific regimes such as the Community Reinvestment Act (CRA). NCUA’s risk-based supervision, enforcement authority, and consumer complaint processes demonstrate active oversight tailored to the cooperative model.
Lower Loan Rates
The DCUC letter also pointed to NCUA data showing credit unions consistently deliver lower average loan rates and higher savings yields than banks across key products, reinforcing their role in promoting consumer access and affordability.
“Congress can insist on accountability without undermining a cooperative model that federal law deliberately recognized that federal regulators continue to supervise, and that millions of Americans continue to choose because it delivers better rates, lower costs, and mission-focused service,” wrote Stverak.
DCUC told Congress that policy changes to credit union taxation would have direct, material consequences for military and veteran communities, especially in instances where emergency relief measures, including zero-percent loans, fee waivers, payment deferrals, and financial counseling are needed.
‘Proportional Oversight’
“Any specific concerns brought into question can and should be addressed through targeted, proportional oversight,” DCUC President and CEO Anthony Hernandez said in a statement. “Broad, charter-wide policy changes would impose real costs on communities across America, without a corresponding policy justification in the statutory or supervisory record. We’re asking Congress to preserve the existing legal and regulatory framework governing credit unions, reject proposals for sweeping tax changes, and focus instead on evidence-based, narrowly tailored oversight that protects consumers while maintaining the integrity of the cooperative financial system.”
