In the letter, DCUC noted the advantages the tax-exempt status provides the economy.

A 2023 study by CUNA found that credit unions delivered $15.5 billion in direct financial benefits to their members through better rates and lower fees compared to banks.
NAFCU estimated that eliminating the tax exemption would cost credit union members $208 billion over 10 years due to increased fees and reduced rate advantages.
Credit unions play a crucial role in funding small businesses, especially those owned by veterans and military spouses. Studies show credit unions are 10% more likely to approve small business loans compared to banks.
Credit unions are instrumental in promoting homeownership, particularly for first-time buyers and service members utilizing VA home loans.
Defense credit unions provide essential financial education, emergency assistance programs and low-interest payday alternative loans to protect military families from predatory lenders.

If credit unions were taxed, according to DCUC’s letter, “the economic impact would be severe” and noted the following ramifications:

Higher Costs for Families: The average credit union household would pay an additional $150-$200 annually in higher loan rates and fees.
Reduced Credit Availability: A tax on credit unions could shrink small business lending by up to $5 billion annually.
Wider Economic Disruptions: NAFCU estimates that taxing credit unions would slash $142 billion from the U.S. GDP over 10 years, leading to job losses and weaker economic growth.

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Volume Turned Up to Protect CU Tax Status During House Budget Hearing