U.S. House of Representatives. Courtesy photo
In a letter submitted this week to the U.S. House Budget Committee leaders, America’s Credit Unions called on lawmakers to protect the federal credit union tax exemption and maintain strong funding for the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund as part of the ongoing budget reconciliation process.
“As you develop a budget resolution for fiscal year 2026, we write to emphasize the importance of protecting the credit union tax status and the CDFI Fund program,” the association stated in its May 15 letter.
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America’s Credit Unions warned that any efforts to scale back the CDFI Fund or challenge the credit union tax exemption could significantly disrupt access to affordable financial services, especially in underserved and economically disadvantaged communities. The letter highlighted that credit unions reinvest earnings to benefit members, and the tax exemption enables institutions to offer lower fees and better rates to consumers.
The association also pointed to the vital role credit union-affiliated CDFIs play in advancing financial inclusion. “The CDFI Fund program remains critical in ensuring that CDFIs — including credit unions — can continue to meet the evolving needs of disadvantaged communities through the deployment of affordable capital,” the letter stated.
As budget negotiations intensify, America’s Credit Unions asked the Committee to prioritize community-focused financial policies. “Congress has long recognized that credit unions operate differently than other financial institutions,” the letter added, “and we urge you to preserve this recognition in your work on the upcoming budget resolution.”
The letter came as lawmakers debate spending priorities and potential tax reforms ahead of the fiscal year 2026 deadline. Leaders of the House of Representatives have remained focused on a Memorial Day deadline to pass its version of the budget.
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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.
