Credit unions share tax status message on Capitol Hill

March 5, 2025

Credit union leaders from all over the country shared the credit union difference and engaged lawmakers in supporting the credit union tax status as part of their Hill meetings this week during America’s Credit Unions’ Governmental Affairs Conference (GAC). 

The visits also came as the House Ways and Means Republicans discussed the credit union tax status at its weekly luncheon, as reported by Punchbowl News. Punchbowl previously interviewed America’s Credit Unions President/CEO Jim Nussle about how credit unions step in to serve places banks leave behind, while banks attack the tax status with red-herring arguments.  

Advocating for the tax status was highlighted all week during GAC by America's Credit Unions' leaders, including President/CEO Jim Nussle and Chief Advocacy Officer Carrie Hunt. 

Breakout sessions included a panel discussion on using data-proven messaging in the tax fight, tips to engage lawmakers with the Don't Tax My Credit Union campaign, and more. 

The visits also came as the House Ways and Means Republicans discussed the credit union tax status at its weekly luncheon, as reported by Punchbowl News. Punchbowl previously interviewed America’s Credit Unions President/CEO Jim Nussle about how credit unions step in to serve places banks leave behind, while banks attack the tax status with red-herring arguments.  

The importance of advocating for the tax status was highlighted during GAC by Nussle, Chief Advocacy Officer Carrie Hunt and other leaders throughout the event. Breakout sessions included a panel discussion on using data-proven messaging in the tax fight, tips to engage lawmakers with the Don't Tax My Credit Union campaign, and more.

In the past week, Fortune ran an op-ed from Nussle and Luminate – Louisiana’s Credit Unions President/CEO Juan Fernández Ceballos the millions that would suffer with a change to the tax status. American Banker also ran an exclusive on an independent study sponsored by America’s Credit Unions showing consumers would pay a steep price if credit unions were to lose their tax status.

Sharing personal stories of credit union impact—and how they are made possible by the tax status—was at the forefront in many of the Capitol Hill meetings. 

Iowa credit union leaders and the Iowa Credit Union League met with Senators Charles Grassley and Joni Ernst.  Both senators expressed their support for the good work credit unions do, discussed the credit union tax status and listened intently to the examples shared with them.  These ranged from preventing a banking desert by building a standalone branch after the local grocery store  - which housed an in-store credit union - closed,  to providing a small business loan that allowed a former farmer to build a new business that now employs dozens of people.

Sen. Mazie Hirono, D-Hawaii, also met with a large contingent of credit union leaders, discussing the credit union tax status and other issues of concern.  Hirono, who serves on the House Small Business Committee, introduced the Veterans Member Business Loan Act with Sen. Dan Sullivan (R-Alaska) that would remove member business loans made to veterans from the credit union MBL cap of 12.25%.  

The Cooperative Credit Union Association’s meetings included new Sen. Lisa Blunt Rochester, D-Del., a friend of credit unions dating from her time working under then-Gov. Tom Carper and through several terms in the U.S. Congress.

Blunt Rochester introduced the bipartisan Credit Union Board Modernization Act (S. 522) earlier this year (the House passed its version in February).

Delaware credit unions shared how essential the credit union tax status is to service to many communities in the state, and they shared programs that focus on veterans, underserved communities, and prospective homebuyers, among others.

Blanche Jackson, CEO of Stepping Stones Community Federal Credit Union shared information about a new program they’ve launched through membership in the Federal Home Loan Bank system. 

“This program will renovate five homes for five families that wouldn’t otherwise be able to afford a home,” she said. “And when it’s all finished, their mortgage will be less than $100,000.”

Massachusetts credit union leaders provided examples of impact to their communities across the state with Sen. Elizabeth Warren, D-Mass. Warren also shared her own example, explaining how she counseled her niece to look to a credit union for resources and guidance to help address credit card debt on a public teacher’s salary.  

Lauren Duffy, executive vice president and chief operating officer for UMassFIVE College Federal Credit Union, outlined how the senator’s support on key credit union issues makes a big impact.

“When you protect our tax status, we train our staff to provide one-on-one financial coaching to people just like your niece. When you protect our interchange income, we ensure that your constituents have access to a credit card that is local, fair, and safe. And when you raise our small business lending cap, you ensure we can keep saying yes to folks.”

Credit unions with members on appropriations committees also shared the need for certainty when it comes to programs such as the Treasury’s Community Development Financial Institutions Fund, Environmental Protection Agency’s grants, the New Market Tax Credit, and more.

Mississippi credit unions emphasized the importance of CDFI funds in the state, and highlighted that the funds go directly to the communities they’re intended for in meetings with Rep. Michael Guest, R-Miss., a member of the House Appropriations Committee.

 

 

 

 

 

 

 

 

 

heelo