DCUC Responds to Remarks by Congresswoman Claudia Tenney at ABA Conference
DCUC Letter Offers Dialogue on Credit Union Tax Status and Regulation
On October 29, 2024, the Defense Credit Union Council, DCUC, sent a letter to Congresswoman Claudia Tenney (NY-24) in response to comments made during the recent American Bankers Association (ABA) conference. In the letter, Jason Stverak, DCUC Chief Advocacy Officer, expresses DCUC’s appreciation for Congresswoman Tenney's willingness to discuss credit unions' tax-exempt status and regulatory framework, including Community Reinvestment Act (CRA) requirements.
“The tax-exempt status of credit unions is closely tied to their mission-driven structure, especially those that serve military and defense communities,” says Stverak. “Unlike shareholder-driven institutions, credit unions reinvest earnings into their member services and community programs. Our priority is also ensuring the financial stability and readiness of service members, veterans, and their families.”
In the letter, Stverak highlighted the fundamental differences between credit unions and banks, including their unique member-focused missions and not-for-profit cooperative structure. Stverak emphasized that defense credit unions serve a targeted field of membership, often in underserved military and veteran communities, and align naturally with CRA goals without requiring identical regulatory treatment.
"Defense credit unions support military members worldwide, providing affordable loans, financial education, and resources tailored to the unique needs of service members," adds Stverak. "This targeted approach to service creates an inherent alignment with CRA objectives and reflects their commitment to the communities they serve. Applying bank-specific CRA requirements to credit unions would overlook the unique and vital role they play in members' financial lives.”
DCUC is committed to advancing financial readiness for military and veteran families and upholds its mission of service, advocacy, and empowerment for its member credit unions serving these important communities.
Stverak offered to meet with Congresswoman Tenney and her staff to further discuss the contributions of defense credit unions to military and veteran communities while addressing any concerns related to tax-exempt status or regulatory alignment.