NEW YORK – – Donald Trump signed his ‘One Big Beautiful Act’ into law recently, setting out his tax and spend plans – and while controversial, the package contains no change to the much-contested tax exemption for the credit union sector.
Credit union leaders have been furiously lobbying over recent months in favour of the exemption, which has long seen opposed from the private banking sector. These efforts, which included the Don’t Tax My Credit Union campaign, went down to the wire, with apex America’s Credit Unions [ACU] urging legislators on the eve of the vote to “reject any changes or efforts that would harm credit unions or the members they serve as this legislation moves forward towards final passage in the House of Representatives”.
After the bill passed, ACU CEO Jim Nussle said: “We thank the US Senate for securing the credit union not-for-profit tax status and not adding a new tax on 142 million credit union members.
“Hard-working Americans and their communities rely on the competitive rates and personally tailored services offered by credit unions to achieve their American Dream. By preserving the credit union tax status, it provides consumers across the country with more opportunities to achieve financial freedom.”
ACU says the news “represents the successful culmination of credit unions’ advocacy strategy to secure the credit union tax status through the tax reform and reconciliation process.”
It added, in a post on its website: “Several months after Congress said everything was on the table, the credit union tax status was not changed in any draft provision, legislation, or amendment during the process.
Nussle added: “Credit unions stand ready to help even more people reach their American dream, and America’s Credit Unions will continue to work with Congress and the administration to enact policies that empower our industry.”
ACU says the credit union industry “united to elect a credit union-friendly majority in the 119th Congress last year and welcomed members during swearing-in day with critical discussions on the importance of preserving the tax status for members and communities”.
These lobbying efforts continued with targeted member visits in D.C., meetings in home districts and states, and regular communication with members of Congress and their staff throughout the process.
This included meetings with Senate Finance Committee chair Mike Crapo and Republican committee members; with every Republican member of the House Ways & Means Committee; with the White House National Economic Council, Office of Management and Budget, and six times with the Treasury Department.
Sector representatives also met with Senate majority leader John Thune, speaker of the House Mike Johnson, House majority leader Steve Scalise, and House Financial Services Committee chair French Hill.
All 535 Congressional offices were sent key data on the credit union difference, and more than 861,000 grassroots letters were sent directly to lawmakers.
And a digital ad campaign targeting key tax writers and congressional leaders has generated over 139 million ad impressions and engaged over 191,000 activists, says ACU.
The apex adds: “With the bill being signed into law, advocates are encouraged to reach out to members of their Congressional delegation through the Don’t Tax My Credit Union take action page, especially credit union champions who helped protect the credit union tax status throughout the budget reconciliation process.”
But Trump’s act remains contentious, with community development credit union [CDCU] apex Inclusiv warning the package “stands to deepen the affordability crisis for hardworking low- and moderate-income households across the nation.
“From stripping health coverage and food assistance from millions of Americans to increasing energy bills and stalling job creation, this legislation threatens to push basic necessities dangerously out of reach for families already struggling to make ends meet.”
Inclusiv also criticised “a performative repeal of the Greenhouse Gas Reduction Fund [GGRF] years into the EPA’s implementation of GGRF and rescinds US$ 19 million of funding specifically designated for program oversight, hampering the EPA’s capacity to efficiently manage the programme”.
However, Inclusiv hopes the move “should not have an immediate impact on Inclusiv’s grant funds under the Clean Communities Investment Accelerator [CCIA], which were obligated and disbursed in 2024, and have been stayed as a result of pending litigation.
“The plaintiffs, including Inclusiv, in the litigation filed a letter to this effect with the D.C. Appeals Panel.”
The CDCU apex also joined ACU in welcoming the retention of the tax status, and also noted that the CDFI Fund’s New Markets Tax Credit programme has been made permanent.
https://thecooperator.news/us-coops-react-to-trumps-election-victory/
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