Credit union leaders are applauding the House Ways and Means Committee for preserving the federal tax exemption for credit unions in the FY2026 budget reconciliation bill advanced out of committee Wednesday morning. The move is being hailed as a critical win for credit unions and credit union members.
“Thank you to Chairman Jason Smith and the House Ways and Means Committee for recognizing the immense value credit unions have on communities and securing the credit union tax status,” said Jim Nussle, president/CEO of America’s Credit Unions. “This is a major victory for 142 million hardworking American families and small businesses who rely on credit unions, as it allows these community-first institutions to continue to serve Main Street America without limitation.”
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The bill passed along party lines, 26–19, and now heads to the House Budget Committee for integration into the broader reconciliation package.
For America’s Credit Unions, it marks the payoff of a year-long strategy that included over 771,000 grassroots letters to lawmakers, meetings with all 535 congressional offices, targeted digital ads, op-eds, and direct engagement with the White House, Treasury, and Congressional leadership.
The Defense Credit Union Council (DCUC), representing institutions that serve 40 million military members and their families, also praised the committee’s decision. “On behalf of America’s defense credit unions, we thank Chairman Smith, Ranking Member Neal, and the entire committee for rejecting any changes to the historic credit union tax status,” said DCUC President/CEO Anthony Hernandez. “This outcome reflects a clear understanding by lawmakers that credit unions are unique, member-owned cooperatives whose tax exemption empowers these institutions to reinvest in America’s communities.”
DCUC Chief Advocacy Officer Jason Stverak added, “By upholding the credit union tax exemption, the House Ways and Means Committee has protected constituents’ wallets and communities. This bipartisan decision safeguards a young family’s chance to afford their first home, a veteran’s ability to start a small business, a retiree’s access to a trusted local financial partner, and a neighborhood’s access to fair, affordable services.”
As the bill advances, credit union trade groups say they will continue working to preserve this key protection through the full budget reconciliation process.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
