DCUC Urges Congress to Protect Credit Unions’ Tax-Exempt Status

WASHINGTON, D.C. – The Defense Credit Union Council (DCUC) took a strong stance in defense of credit unions’ tax-exempt status, sending letters to the Senate Finance Committee and the House Ways and Means Committee last week following its Defense Matters 2025.
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This advocacy coincides with thousands of credit union leaders gathering in Washington, D.C., for America’s Credit Unions Governmental Affairs Conference (GAC) and DCUC’s Defense Matters event; both highlighting the devastating impact of eliminating the tax exemption.

DCUC’s letter shared how credit unions prioritize members over profits by reinvesting earnings into lower fees, better rates, and financial education. Jason Stverak, DCUC Chief Advocacy Officer stressed how removing the tax exemption would raise borrowing costs for military families, forcing them toward predatory lenders, and lead to the closure of credit unions on military bases, reducing servicemembers’ financial options, and cutting essential programs like free credit counseling and homebuyer assistance.

Stverak reminded that, despite claims from the banking industry, the tax exemption is not an unfair advantage. In the letter, Stverak pointed to how large banks receive over $20 billion annually in tax breaks and exploit the tax code to avoid corporate income tax.

Congress has long recognized the importance of credit unions, reaffirming their tax-exempt status through bipartisan efforts like the 1998 Credit Union Membership Access Act. With thousands of credit union leaders in Washington this week, the message is clear: preserving the tax exemption is critical for financial fairness, economic opportunity, and national security.

DCUC urges Congress to stand firm in safeguarding this status, as the cost of eliminating it is too great for military families and underserved communities.

For more information, please contact Jason Stverak at [email protected] and visit
dcuc.org/advocacy.