The Defense Credit Union Council (DCUC) commends the U.S. House of Representatives for passing the One Big Beautiful Bill Act (H.R. 1) early this morning and for preserving the credit union federal tax status in the final package. The bill passed with a narrow 215-214 vote following the approval of a sweeping 42-page amendment.
While the bill includes several provisions with potential implications for credit unions—particularly around regulatory oversight, CUSO partnerships, and green energy lending—the exclusion of any changes to credit unions’ tax-exempt status marks a significant win for the industry and the military communities it serves.
DCUC will continue to monitor the bill closely as it moves to the Senate, where substantial revisions are expected.
America’s Credit Unions has been preparing a unified advocacy strategy for tax policy discussions for the past year, recognizing that many of the 2017 Tax Cuts and Jobs Act provisions would expire in 2025. America’s Credit Unions PAC, in partnership with leagues, identified credit union champions to support during the 2024 election cycle. Following the presidential election, the credit union industry came together to further develop its tax strategy.
Through the Don’t Tax My Credit Union campaign, which began laying the groundwork with lawmakers during swearing-in events in January, America’s Credit Unions, leagues, and credit unions have:
· Met with every Republican member of the House Ways & Means Committee, including Chairman Jason Smith several times
· Met with the White House National Economic Council, Office of Management and Budget, and Treasury Department (6x)
· Met with Senate Majority Leader John Thune, Speaker of the House Mike Johnson, House Majority Leader Steve Scalise, Senate Finance Committee Chairman Mike Crapo, House Financial Services Committee Chairman French Hill
· Contacted all 535 Congressional offices with key data on the credit union difference
· Generated more than 830,000 grassroots letters directly to lawmakers
· Launched digital ad campaign targeting key tax writers and congressional leaders that has generated over 122 million ad impressions and engaged over 180,000 activists
America’s Credit Unions and the credit union industry will continue these unified advocacy efforts to ensure the Trump Administration and lawmakers recognize the value of and secure the credit union tax status in final legislation.
Anthony Hernandez, DCUC President and CEO:
“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.”
Jim Nussle, America’s Credit Unions President/CEO“
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. 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. We will continue to advocate for policies that create more opportunities for credit unions to bolster our nation’s economic prosperity. We call on the U.S. Senate to continue to protect the credit union tax status as they consider this legislation.”
Jason Stverak, DCUC Chief Advocacy Officer:
“We appreciate the House’s decision to maintain the credit union tax exemption in the final version of the bill. 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.”
CCCA/Interchange Legislative Proposals
DCUC remains firmly opposed to the Credit Card Competition Act (CCCA) and continues to warn that it would harm financial protections for military families while enriching large retailers unlikely to pass savings to consumers.
Joint Advocacy Effort
DCUC joined nine other financial trade associations in a letter to Senate leadership urging the removal of the Durbin-Marshall credit card mandate from the GENIUS Act, calling it a “poison pill” that would reduce consumer choice, increase fraud, and disproportionately harm small financial institutions.
*See attached press release for a full summary of DCUC’s Monday letter and the joint trades letter to Senate leadership.
DCUC Applaud Passage of VA Home Loan Program Reform Act (H.R.1815)
DCUC commends the House of Representatives for passing H.R. 1815, the VA Home Loan Program Reform Act, which introduces a permanent Partial Claim Program to assist veterans in avoiding foreclosure.
“This legislation is a significant step forward in supporting our nation’s veterans,” said Stverak. “By providing the VA with tools comparable to those of other federal housing agencies, we can better serve veteran members facing temporary financial challenges.”
The Partial Claim Program allows the VA to cover a portion of a delinquent loan, enabling veterans to resume regular payments without the burden of additional interest. This approach not only aids veterans in retaining homeownership but also strengthens the stability of the mortgage market.
DCUC remains committed to supporting initiatives that enhance financial security for veterans and looks forward to the Senate’s consideration of this vital legislation.