 Your weekly advocacy update: Stay informed, take action, and champion the voice of America’s defense credit unions! This week, DCUC pressed into its mission, championing the voice of defense credit unions to both the Treasury Department and Congress, successfully responding to the March 14 Executive Order scaling back the CDFI Program. DCUC and its member credit unions' perspectives, and concerns, were heard across Capitol Hill and in both trade and National media. DCUC didn't stop there. We've continued to defend against calls to revoke or alter the credit union tax status, and are equipping our members with the resources and tools to join this important fight. Stay up to speed as we push forward! Follow along with our weekly announcements here. Top Priorities This Past Week It's been a busy week! Last Saturday, we issued a statement expressing our concerns over the March 14, 2025, Executive Order. We followed up Sunday morning with a letter to U.S. Treasury Secretary Scott Bessent, and on Monday, we sent additional letters to the HFSC, the Senate Banking, Housing, and Urban Affairs Committee, and the Senate Community Development Finance Caucus. DCUC's concerns were noted by both Politico and Washington Business Journal, and DCUC was grateful to receive a prompt response from Treasury Secretary Bessent. DCUC also provided a sample letter to our member credit unions, outlining the potential impact of this decision and how they can take action. Later in the week, DCUC continued to share our concerns by sending direct correspondence to over 600 congressional contacts, urging bipartisan support for the CDFI program. Read more about this effort in CUToday! As of recent, twenty-three senators sent a letter to Treasury Secretary Scott Bessent "to reaffirm [their] bipartisan support of the CDFI Fund, its operations, and the critical role it plays in the communities it serves." Concerns over the credit union tax exemption continue to escalate. See more about this within our 'Advocacy Discussions' section below! DCUC continues to advocate on several critical issues, including:
Government Shutdown Averted DCUC is encouraged by the Senate’s passage of legislation to avert a government shutdown. However, this shifts focus back to tax cut discussions, which could impact credit unions. "Passage of the CR and its signing by the President ensures thousands of government employees and their families were relieved of a potential financially stressful situation. Thankfully during these stressful times, credit unions were once again ready to support their members if Congress was unable to finally reach an agreement." NCUA Independence Efforts to consolidate financial regulators appear to be losing momentum, facing opposition from ICBA, Treasury officials, and other key stakeholders. However, DCUC remains vigilant, emphasizing the importance of an independent NCUA to effectively regulate and support the credit union industry. Advocacy Discussions Banks’ tax hypocrisy will hurt Main Street, not credit unions, featured in CUInsight "Recently, the Independent Community Bankers of America (ICBA) urged Congress to end what it calls an “unwarranted tax subsidy” for credit unions. The demand is as predictable as it is outrageous. While bankers paint credit unions as freeloaders, they conveniently ignore how banks themselves exploit the tax code to avoid paying taxes. Let’s call this attack what it is: a blatant attempt to eliminate competition by punishing the very institutions that put consumers and communities first. Stripping credit unions of their tax exemption will not help taxpayers or Main Street—it will line banks’ pockets at the expense of working families, small businesses, and even our military members..." Read more here. DCUC's Jason Stverak Comments on Executive Order to Eliminate CDFI, featured in CU broadcast Jason Stverak, DCUC Chief Advocacy Officer, expresses concerns over the elimination of the CDFI Fund... Watch the recorded live interview here. Why Banks Selling to Credit Unions is a Win-Win for Everyone, featured in CU Daily "Community banks and credit unions share a mission: serving their communities. In recent years, a growing number of community banks have chosen to sell to credit unions. As someone who advocates for credit unions, I believe this trend deserves praise, not skepticism. When a bank joins forces with a credit union, the result is a win-win – a smooth transition for the selling bank, better service for its customers, and a stronger local community. Below, I outline why these partnerships benefit all involved and address some common misconceptions along the way..." Read more here. Taxing Credit Unions Would Hurt Communities And Help Wall Street, featured in CUToday "In Washington, a battle is brewing over the future of our community-focused credit unions. The Independent Community Bankers of America (ICBA) is lobbying Congress to end the federal tax exemption for credit unions over $1 billion in assets, framing it as “ending an unfair subsidy. But let’s call this push what it really is: a blatant attempt to eliminate competition by punishing the very institutions that put consumers and communities first. Stripping credit unions of their tax exemption won’t help taxpayers or level the playing field – it will line banks’ pockets at the expense of working families and small businesses. This isn’t about fairness; it’s about Wall Street-driven banks trying to snuff out nonprofit credit unions that challenge their market share..." Read more here. Join Our Efforts to Preserve the Credit Union Tax Status
📣 The fight isn't over! Let’s present a united front to defend our industry and members! Join us now by using the following tools we've prepared to assist your credit union:
Use these links to find your Senators and Representatives. Time is of the essence. We must ensure our elected officials understand that taxing credit unions will harm the very people we serve, our Nation's military personnel, veterans, and their families. Thank you for standing with us in this critical fight. Comments are closed.
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