The Defense Credit Union Council (DCUC) has sent a letter to the Senate Finance Committee expressing concern over the nomination of Ken Kies as Assistant Secretary of the Treasury for Tax Policy.
DCUC urged the Committee to question Mr. Kies on his past support for eliminating the federal tax exemption for credit unions and to seek a public commitment that he will not pursue these policies if confirmed.
Mr. Kies has a documented history of advocating for the repeal of credit unions’ tax-exempt status, arguing it lacks justification and could generate additional federal revenue. Given his potential influence over tax policy, DCUC cautions that Mr. Kies’ confirmation could threaten the longstanding tax exemption, which is essential to credit unions’ mission of providing vital financial services to their members.
As the leading advocate for defense credit unions, credit unions dedicated to serving military and veteran members’ financial needs, DCUC stressed that any change to this historic tax status would significantly limit these communities’ access to critical financial resources and services.
This is especially concerning given the unique financial challenges and needs that often accompany the military lifecycle, such as managing expenses during deployments and frequent relocations, securing fair home and auto loans, building financial literacy as young service members, and safeguarding against predatory lenders, scams, and cyber threats.
Defense credit unions remain dedicated to supporting and protecting these communities’ financial prosperity, also providing financial education on and off installations, leading community initiatives, and spearheading fundraising efforts to honor and assist those who serve or have served our nation.
“It’s imperative that as Congress engages in tax and budget reconciliation discussions, the full
impact of eliminating this tax status is carefully considered,” says Anthony Hernandez, DCUC President/CEO. “Undermining this long-standing policy—one that rightfully acknowledges the unique, cooperative nature of credit unions—would have devastating consequences on thecommunities that rely upon credit unions and bring an improper balance within our financial ecosystem. Credit unions remain steadfast in their mission to serve members, providingessential financial resources that help Americans achieve lasting financial security. Congress must recognize that this debate is settled and revisiting it now would directly undermine the Administration’s goals for economic stability and consumer financial well-being.”