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Credit Unions Rally to Protect Financial Security

Credit unions are critical institutions that advocate for the financial well-being of roughly 142 million Americans. While major political discussions in Washington often overlook certain vital issues, there is an ongoing campaign aimed at maintaining the tax-exempt status of these member-owned financial cooperatives. This tax exemption, held for nearly a century, acknowledges the unique not-for-profit nature of credit unions.

However, recent legislative discussions have raised concerns about the potential termination of this exemption. Should it be revoked, the cooperative model that distinguishes credit unions would face considerable threat, leading to higher fees for customers and reduced service effectiveness in the communities that rely on them most.

Across the nation, over 4,600 credit unions of various asset sizes not only provide jobs for 1.2 million individuals but also serve one in three Americans, playing a pivotal role in community support and access to affordable financial services. Whether they are local cooperatives or larger regional institutions, credit unions are collaborating like never before to protect their model and their members.

Leaders within the credit union community insist that every dollar earned is reinvested back into their members' financial health—supporting families in homeownership, empowering small businesses to flourish, and sustaining numerous community organizations that offer essential services.

Michael Wilson, President and CEO of Members 1st Federal Credit Union, emphasizes, “This is not merely about defending our own institution; it is about securing the future of the entire industry that caters to over 140 million Americans.” Members 1st, which serves 600,000 clients in Pennsylvania alone, understands the crucial role credit unions play in the landscape of American financial services.

In many regions, credit unions remain the sole providers of vital financial services, especially in rural and underserved communities. Notably, low-income designated credit unions boast an outstanding $105.9 billion in small business loans, highlighting their significant contributions to local economies.

Amey Sgrignoli, President and CEO of Belco Community Credit Union, adds, “Credit unions are so much more than transactional entities; we serve as friends and neighbors helping individuals achieve their financial aspirations.” He notes how these institutions provide enduring financial support throughout different life stages, from first savings accounts to retirement solutions. Losing the tax-exempt status would jeopardize the ability of smaller regional credit unions to continue serving their communities effectively.

Beyond local initiatives, Members 1st collaborates with various national and regional partners such as the Defense Credit Union Council, the CrossState Credit Union Association, and America's Credit Unions. Their goal is to amplify the collective voice of credit unions, ensuring their impact is recognized at both the legislative and media levels.

Anthony Hernandez, President and CEO of DCUC, states, “We are dedicated to ensuring that the unique advantages of credit unions resonate within Capitol Hill and beyond.” By strategically aligning with other bodies in the credit union ecosystem, they remain united in their mission to uphold the federal tax exemption, which is crucial for serving the immense pool of Americans relying on credit unions.

As discussions in Congress evolve, credit unions and their leaders are committed to standing alongside Main Street America and the millions benefiting daily from their services.

Michael Wilson aptly concludes, “This fight is about safeguarding an industry that has empowered generations of Americans to prosper. Our resolve to defend this cause will persist.”

For those interested in more insights regarding the credit union tax exemption and ongoing advocacy efforts, explore the collaborative op-ed from Members 1st, DCUC, and Belco Community Credit Union available on their respective platforms.

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About Members 1st Federal Credit Union

Celebrating 75 years of commitment, Members 1st Federal Credit Union stands as a member-owned, not-for-profit financial institution with over 600,000 members and $8 billion in assets. Based in Enola, PA, it offers services through nearly 60 branches spread across multiple counties, alongside robust digital banking options. As it honors its legacy, Members 1st remains dedicated to fostering resilient communities and building lasting relationships. For additional information, visit members1st.org or follow on social media.