Credit union tax status must remain secure through reconciliation
The Senate cleared its budget resolution early this morning after an all-night “vote-a-rama" without any amendments. It will now head to the House.
Released earlier this week, the budget resolution addresses only Homeland Security and Judiciary Committee areas of jurisdiction and does not contain any tax-related provisions. America’s Credit Unions wrote to Senators in advance of votes on the floor, proactively urging rejection of “any amendments that could open up the tax code and propose changes to the credit union tax status as part of any reconciliation effort.”
Senate outreach included data showing how the cooperative finance model continues to deliver value and improve affordability by:
- Focusing on consumers, as data shows the overwhelming majority of credit unions’ primary focus is on making loans and providing services to American households;
- Delivering approximately $42 billion in financial benefits in 2025, nearly 17 times the “cost” of the tax status (estimated by the Joint Committee on Taxation to be $2.8 billion in 2026);
- Providing lower loan rates, higher savings yields, and lower fees on average than other types of institutions, improving consumer affordability in the marketplace; and
- Continuing to deliver massive savings and affordable services to consumers, despite a single-digit market share.
America’s Credit Unions will remain engaged with legislators throughout the reconciliation process to ensure the tax status remains secure.
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