Senate Passes H.R. 1 Without Touching Credit Union Tax

In a significant win for the credit union system, the U.S. Senate passed H.R. 1 without any mention of the credit union tax exemption— preserving the not-for-profit status that fuels credit unions’ ability to serve their members and communities.

This victory is the result of months of relentless, unified advocacy driven by CrossState, fellow leagues, American Association of Credit Union Leagues, America’s Credit Unions, and credit union advocates across the country. Through the Don’t Tax My Credit Union campaign, CrossState members helped send a clear message that taxing credit unions is a tax on 142 million Americans who rely on their credit union for affordable financial services and support.

“This success belongs to every member and credit union that stood up, spoke out, and took action,” said CrossState President & CEO Patrick Conway. “Your engagement—sending letters, sharing your stories, and mobilizing your communities—helped protect the foundation of the credit union difference.”

More than 80,000 grassroots messages have been sent to Congress from New Jersey and Pennsylvania, and 861,000 total across the country. Ahead of the Senate vote, a letter signed by more than 750 credit union leaders was delivered to lawmakers, reinforcing the importance of preserving the exemption. CrossState and credit unions in New Jersey and Pennsylvania also held two dozen meetings with members of Congress to advocate on this issue. Vice President JD Vance ultimately broke the 50-50 tie in favor of the bill.

H.R. 1 now returns to the House, where the two versions of the bill will be reconciled. CrossState will continue to monitor the process and remain engaged to ensure the exemption remains intact through the final vote.

Thank you to all who have taken part in this campaign—you are the power behind our advocacy! We look forward to continuing to work alongside you to ensure the tax status remains untouched and all other issues that impact your credit union.