WASHINGTON—With the Community Bankers of America (ICBA) holding a meeting in Washington this week, the Defense Credit Union Council is targeting messages at those in attendance, as well as on Capitol Hill.

The ICBA meeting is taking place in the Gaylord National Harbor Hotel, where DCUC has geo-targeted a digital ad campaign.

Jason Stverak, chief advocacy officer with DCUC, said the objective is that when attendees are “logging on to their devices they’re getting information shared with them about the true nature of the credit union tax exemption and why it needs to be protected….It not only advances the defense credit union agenda, but it helps buttress and support the entire credit union industry.”

Messages on Capitol Hill

At the same time, DCUC said it is working this week on Capitol Hill to spread the word that credit unions—especially those serving the military—are “indispensable to America’s financial strength and resilience.”

“With growing rhetoric from the banking industry aimed at discrediting credit unions, it’s critical that lawmakers have the full picture,” DCUC President and CEO Anthony Hernandez said in a statement. “Credit unions exist solely to serve their members, not shareholders. In the case of defense credit unions, that means delivering affordable, tailored financial services to military personnel and their families, often under circumstances traditional banks are unwilling or unable to address.”

In its message to Capitol Hill, DCUC Chief Advocacy Officer Jason Stverak highlighted a 2025 economic impact study that found eliminating the tax exemption would trigger an estimated $266 billion GDP loss, 822,000 job cuts, and $234.6 billion in added consumer costs over the next decade.

‘What They Forgot to Mention’

DCUC further told Congress that while critics often frame credit unions as enjoying an unfair tax advantage, “they forget to mention how banks received more than $447 billion in tax breaks under the 2017 Tax Cuts and Jobs Act—16 times the fiscal impact of the credit union exemption. Many banks also operate under Subchapter S or use advanced tax accounting to avoid corporate income taxes entirely.”

DCUC’s correspondence also reminded Congress that in 2023, credit unions still paid $36.3 billion in payroll, property, and state taxes—a far cry from the “free ride” narrative pushed by the ICBA.

Additional Points Raised

Other points made by DCUC:

• Criticism of Bank Purchases by CUs. “ICBA frequently cites credit union acquisitions of community banks as signs of ‘mission drift.’ Yet, these transactions challenged by the ICBA are in reality transparent, regulated, and often initiated by community banks themselves—looking for succession plans or relief from regulatory burdens.” DCUC said it also reminded that credit unions step in to serve, not to dominate, and most importantly, preserve access to financial services in local markets.
• High-Visibility Sponsorships and Naming Rights Deals. Such deals “have also been used as a means to attack credit unions and their role as member-based and community-focused institutions. DCUC emphasizes these are strategic marketing investments, funded by member-approved budgets—not taxpayer dollars. The goal: strengthen brand visibility in a market dominated by massive national banks, while delivering value back to members through better rates and lower fees,” DCUC said.
• A Competitive Force for Good. DCUC noted that “credit unions represent just 7% of financial industry assets; even the largest credit unions are dwarfed by the top U.S. banks. But their competitive presence delivers broad market benefits…” DCUC pointed to a 2025 study found $26.9 billion in direct benefits to members, and $10.5 billion in indirect savings to bank customers, thanks to credit union-driven competition.
• Defending Military Financial Readiness. “Many credit unions have long dedicated their institutions to serving the needs of military and veteran members who face unique financial stressors—whether its frequent relocations, deployments, overseas assignments, transitions to civilian life, increased risks to scams and fraud, or less access to capital as aspiring entrepreneurs,” DCUC said. “These institutions, ‘defense credit unions,’ meet those needs often with zero-interest emergency loans, early pay programs, financial counseling designed for service members, and much more.