The U.S. Capitol
In a major legislative victory for credit unions, the U.S. House of Representatives passed H.R. 1, the “One Big Beautiful Bill,” Thursday morning, affirming the not-for-profit tax status of credit unions as part of its broader tax overhaul package.
The bill, seen as the centerpiece of House Republicans’ fiscal agenda, includes a range of tax provisions aimed at extending and expanding key elements of the 2017 Tax Cuts and Jobs Act. For credit unions, the most consequential outcome is what’s not in the bill: any attempt to alter or eliminate their long-standing tax-exempt status.
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“Thank you to the U.S. House of Representatives for securing credit unions' not-for-profit tax status as part of H.R. 1 and recognizing the industry's importance to strong Main Streets across the country,” said Jim Nussle, president/CEO of America’s Credit Unions, in a statement released following the vote. “More than 142 million Americans trust and rely on credit unions to achieve their American Dream, and this bill allows them to continue on their path of financial freedom.”
Anthony Hernandez, president/CEO of the Defense Credit Union Council (DCUC) said, “We thank the House for recognizing the essential role credit unions play in supporting military families and for preserving our not-for-profit tax status in H.R. 1. This decision protects credit unions' ability to offer affordable financial services to those who serve, and members of local communities, especially during uncertain economic times.”
Nussle urged the Senate to follow suit as they begin consideration of the bill. “We call on the U.S. Senate to continue to protect the credit union tax status as they consider this legislation.”
The 215-214 House vote marks the culmination of an aggressive, year-long advocacy campaign by America’s Credit Unions, DCUC, and state leagues.
DCUC's Chief Advocacy Officer, Jason Stverak added, "This sends a strong message that Congress understands and values the unique mission of credit unions—especially those that serve our nation’s military and veteran communities.”
According to America’s Credit Unions, the organization coordinated closely with key lawmakers, launched a hefty advertising push, and activated grassroots supporters nationwide.
As part of its “Don’t Tax My Credit Union” campaign, credit union officials and supporters:
- Met with all Republican members of the House Ways & Means Committee
- Engaged White House economic advisors, the Treasury Department, and the Office of Management and Budget
- Delivered more than 830,000 letters to Capitol Hill
- Generated 122 million ad impressions and mobilized over 180,000 activists
Credit union leaders argue the tax exemption is vital to their ability to offer low-cost financial services, particularly in underserved communities. “We will continue to advocate for policies that create more opportunities for credit unions to bolster our nation's economic prosperity,” Nussle said. “This bill allows [credit unions] to continue on their path of financial freedom.”
The bill now moves to the Senate, where its fate, and that of the credit union tax status, remains closely watched.
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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.
