DCUC Urges Credit Unions to Support "Clean" FY2025 NDAA and Defend CU Tax Exemption Status

Today, the Defense Credit Union Council (DCUC) called on its member credit unions to join its efforts in urging both houses of Congress to pass a "clean" FY2025 National Defense Authorization Act (NDAA) and protect the industry's current tax exemption status.

The Council pointed to recent attempts to amend the NDAA by opening the Federal Credit Union Act (FCUA) to allow credit unions to accept non-member deposits. DCUC also highlighted its joint letter with America’s Credit Unions (ACU) sent to the Senate Armed Services Committee in June, which raised these concerns.

In addition, DCUC noted its continued efforts in the weeks leading up to August recess to ensure the NDAA remains free of any provisions resembling the Durbin-Marshall Credit Card Competition Act (CCCA) or study proposals that could give rise to similar regulations. DCUC also emphasized a broader concern it has been closely monitoring: the growing threat to credit union tax exemption status.

"It's no surprise there has been greater scrutiny within Washington on the CU tax exemption, with attacks just this week from the ICBA challenging our industry's tax status,” said Jason Stverak, DCUC Chief Advocacy Officer. “DCUC has proven to be the toughest industry advocate when defending the credit union tax exemption and remains the only trade association to fully oppose expansion of the Community Reinvestment Act (CRA) and troublesome CRA-like language overlooked in Section 204 of this same bill to credit unions.” 

Stverak provided a response to the banking industry’s criticism of credit unions tax exemptions, stating “Credit unions remain vital, member-centric institutions, distinct from profit-driven banks. It is unacceptable to equate credit unions—especially those serving military & veteran communities—with large banks. Eliminating their tax-exempt status would limit consumer choices and reduce support for low- and moderate-income individuals. The value credit unions provide to their communities far outweighs any potential tax revenue.”

With the Trump Administration's "Tax Cuts and Jobs Act" set to expire, DCUC had warned the industry Congress has already signaled its willingness to re-examine the credit union tax exemption as part of broader tax discussions. Read more here.

As DCUC continues to lead the fight against these threats, the Council encouraged its members to take action by writing to their state representatives and voicing their concerns on these critical issues.