CREDIT UNIONS RALLY TO PROTECT TAX-EXEMPT STATUS, SAFEGUARDING 142 MILLION AMERICANS' FINANCIAL FUTURE

ENOLA, Pa., June 20, 2025 /PRNewswire/ -- While much of the public debate in Washington focuses on high-profile issues, an equally important fight is underway to preserve the financial well-being of 142 million Americans: protecting the tax-exempt status of credit unions.

Credit unions have held this tax exemption for nearly 100 years. It is a recognition of their not-for-profit, member-owned structure. But recent discussions on Capitol Hill have sparked concern that it could be on the chopping block. Its elimination would fundamentally dismantle the cooperative model unique to credit unions; lead to an increase in customer fees; and reduce credit unions' effectiveness in the communities they serve.

Across the country, 4,617 credit unions of all asset sizes provide 1.2 million jobs and serve one in three Americans. They play an essential role in strengthening communities and expanding access to affordable financial services. From small, local cooperatives to large regional institutions, they are banding together in unprecedented ways to defend the credit union model and protect their members. They have been working tirelessly with industry leaders, policymakers, and their member-owners to ensure lawmakers understand what is at stake.

In many communities, credit unions are the only financial institution present and provide critical financial services to rural and diverse underserved communities with $105.9 billion in outstanding small business loans from low-income designated credit unions.

"This is not just about protecting our credit union—it is about protecting the entire industry representing the more than 140 million Americans who choose credit unions to meet their consumer and small business needs," said Michael Wilson, President & CEO of Members 1st Federal Credit Union which serves 600,000 members in Pennsylvania. "Every dollar credit unions earn is reinvested in their members—helping families buy homes, empowering small businesses to grow, and supporting thousands of community organizations that provide critical services."

Unlike many industries where organizations compete for market share, credit unions believe that collaboration is the key to long-term success for their members and communities. The current tax exemption issue has brought even stronger and more unified collaboration. Leaders within Members 1st have spearheaded ongoing communication between credit unions across Pennsylvania, New Jersey, and Washington, DC, encouraging collaboration and freely sharing advocacy materials and resources for others to take and use as their own.

"Credit unions are not just financial institutions—we are neighbors, friends, and partners in helping people achieve financial well-being," said Amey Sgrignoli, President & CEO of Belco Community Credit Union. "From first savings accounts to first homes to retirement planning, credit unions provide generational financial support for every season of life. Losing our tax-exempt status would threaten that ability, especially for small, regional credit unions that serve local neighborhoods."

In addition to local collaboration, Members 1st is working alongside national and regional partners, including the Defense Credit Union Council (DCUC), CrossState Credit Union Association, and America's Credit Unions (ACU), to amplify the voice of credit unions.

"We are making sure the credit union difference is heard and understood on Capitol Hill and in national media," said Anthony Hernandez, President & CEO of DCUC. "By working alongside partners across the credit union system, we are united in protecting the federal tax exemption that allows credit unions to serve 140 million Americans through more than 4,600 federally insured institutions."

As Congress continues their debates, credit union and industry leaders will continue to stand with Main Street America and the millions of Americans who benefit from credit union services every single day.

"This is about preserving the credit union industry that has helped generations of Americans thrive," added Wilson. "We will never stop fighting for them."

For more information about the credit union tax exemption and efforts to preserve it, please read the recent joint op-ed authored by Members 1st, DCUC, and Belco Community Credit Union.

About Members 1st Federal Credit Union:
Celebrating 75 years of service, Members 1st Federal Credit Union is a member-owned, not-for-profit financial institution with more than 600,000 members and $8 billion in assets. Headquartered in Enola, PA, Members 1st serves its members and communities through its network of nearly 60 branch locations throughout Adams, Berks, Cumberland, Dauphin, Lancaster, Lebanon, Lehigh, Lycoming, Northampton, Perry, and York counties, as well as its robust digital banking and call center channels. As Members 1st honors its 75-year milestone, the organization remains committed to building stronger communities and meaningful relationships. To learn more about Members 1st, visit members1st.org or follow us on Facebook, Instagram, LinkedIn, and X.

Contact:
Courtney McFarland, Communications Manager
(717) 829-3776; [email protected] 

SOURCE Members 1st Federal Credit Union