Supporting the credit union tax status as budget reconciliation markups begin

April 30, 2025

While the credit union tax status does not fall under the House Financial Services Committee’s specific purview, America’s Credit Unions urged the committee and the full Congress to protect the tax status in a letter before the committee’s Wednesday markup of its budget resolution.

“As member-owned not-for-profit cooperatives, the structure and mission of credit unions is the same—to serve their members—regardless of institution size, big or small. While some attack credit union growth, the fact is that the entire industry remains under 10% of total depository institution assets, just as it has for its entire history,” wrote America’s Credit Unions President/CEO Jim Nussle. “We are pleased to see that the Committee’s section of reconciliation does not directly impact credit unions’ ability to serve their 142 million members.”

The committee’s section of reconciliation does include language of interest to credit unions, with provisions to:

  • Reduce the CFPB’s authority to draw funds from the Federal Reserve to 5% of the Fed’s total operating expenses (it’s currently capped at 12%), ensuring it would be able to function, but would need Congressional appropriations as a funding source; and
  • Require the CFPB to return to the general fund of the U.S. Treasury any civil penalties remaining in the Civil Penalty Fund that remain after payment to direct victims.

The House Financial Services Committee is among the first to mark up its section of the budget resolution. All House committees will do the same before sending them to the House Rules Committee to assemble the full bill for a floor vote. Tax issues fall under the House Ways and Means Committee’s jurisdiction, and that committee is likely to mark up its bill the week of May 12.

America’s Credit Unions urges credit unions to activate staff, boards, and members to support the credit union tax status as part of its ongoing tax advocacy strategy. Comments to legislators can be submitted through the Don’t Tax My Credit Union website.

Other resources include a Don’t Tax My Credit Union Social Media Toolkit, and guides to contact lawmakers, write op-eds and letters to the editor, and more.