WASHINGTON—The Defense Credit Union Council (DCUC) this week launched a targeted advocacy campaign in the nation’s capital, while separately, it has joined with America’s Credit Unions in applauding congressional action to end a prolonged partial government shutdown that affected thousands of federal workers.
Through its Defending Credit Unions National Advocacy Fund, DCUC said it rolled out a geofenced digital advertising initiative and a “strategically routed mobile billboard campaign” timed to coincide with the ICBA Washington Summit. The effort is designed to reach policymakers and industry leaders with what the organization described as accurate information regarding the credit union charter, tax status and the role credit unions play in serving consumers and communities.
As the CU Daily reported here, in conjunction with its Washington meeting, the ICBA has released another poll it commissioned that it says shows Americans broadly support eliminating the tax exemption for credit unions that “act like banks.”
The bankers group also used the latest acquisition of a bank by a credit union (see related story) to again call for taxing credit unions of more than $1 billion in assets.
Two Primary Messages
According to DCUC, the campaign features two primary messages: one focused on preserving the federal tax status of credit unions and another addressing issues surrounding bank-credit union acquisitions. Both messages direct audiences to educational resources hosted by the organization.
“While some continue to recycle misleading narratives about credit unions, DCUC is committed to ensuring lawmakers and stakeholders hear the facts,” Anthony Hernandez, president and CEO of DCUC, said in a statement.
Tax Status Reflects Congressional Mandate
He further emphasized that credit unions are member-owned, not-for-profit cooperatives created to serve members rather than shareholders, and said their tax status reflects that congressional mandate.
DCUC also reiterated that acquisitions involving community banks selling to credit unions take place through regulated and transparent approval processes that include federal agency oversight and safety-and-soundness reviews.
“Attempts to broadly attack the credit union charter through misinformation do nothing to help consumers or local economies,” said Jason Stverak, the group’s chief advocacy officer.
The organization said its campaign underscores that policy debates should be grounded in facts and evidence, rather than rhetoric, and urged policymakers gathered in Washington to prioritize access to affordable financial services, consumer choice and fair competition.
Congress Commended for Passing DHS Funding
Separately, DCUC commended Congress for passing legislation to restore funding for most Department of Homeland Security agencies, ending a 76-day shutdown that affected U.S. Coast Guard members, Transportation Security Administration personnel, Secret Service agents, FEMA employees, Cybersecurity and Infrastructure Security Agency staff and other federal workers.
The legislation, approved Thursday and expected to be signed into law, restores operations and pay for impacted agencies following weeks of disruption and financial strain.
“DCUC applauds Congress for taking action to end this partial shutdown and provide long-overdue relief to the men and women who continued serving our nation without pay,” Hernandez said, noting that credit unions provided emergency assistance, affordable financial services and guidance to affected members during the shutdown.
Real-World Consequences
Stverak said the episode highlighted the real-world consequences of political gridlock.
“This shutdown demonstrated that political impasses carry real consequences for working families and those on the front lines of public service,” Stverak said. “Policymakers must work toward lasting solutions that prevent future disruptions and protect the financial wellbeing of those who serve.”
America’s Credit Unions Responds
“We applaud the House for passage of the Department of Homeland Security funding bill to end the partial government shutdown. While thousands of DHS employees and their families faced financial uncertainty for weeks, credit unions provided consistent relief to them every step of the way,” America’s Credit Unions President and CEO Scott Sullivan said in a statement. “From payroll advances, interest-free paycheck replacement loans, skip-a-payment options, and emergency lines of credit, credit unions showed up for those in need, as they always do. America’s Credit Unions remains focused on amplifying just how essential credit unions are to the financial well-being of Americans all across the country. We urge the President to quickly sign the funding legislation into law. As Congress moves forward with reconciliation, we encourage them to keep the credit union difference secured and leave tax provisions out of this process.”
