Don't Tax My Credit Union Update

​Another major win for credit unions as industry advocacy proves successful once again.

by Chesney Garnos, Director of Political & Grassroots Affairs
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Today, we celebrate a tremendous win for credit unions across the country and right here in the Dakotas. In a significant victory for our movement, the U.S. House of Representatives has officially preserved the not-for-profit tax status of credit unions in H.R. 1, the comprehensive budget reconciliation package dubbed the “one, big, beautiful bill.” This outcome reaffirms the value and purpose of not-for-profit financial cooperatives in serving everyday Americans.

The legislation narrowly passed on Thursday by a 215–214 vote, following a marathon session by the House Rules Committee that cleared the bill for floor consideration. Most notably, the credit union tax exemption remained intact through every stage of the legislative process from drafting to markup to amendments thanks to the unified and persistent advocacy of credit union supporters nationwide.

“This critical milestone wouldn’t have been possible without the leadership and steadfast support of Congressman Dusty Johnson (SD) and Congresswoman Julie Fedorchak (ND),” said Jeff Olson, president/CEO of the Dakota Credit Union Association. “Their unwavering commitment to preserving the credit union difference and their recognition of the role we play in building financial well-being for allis deeply appreciated. On behalf of all Dakota credit unions and the communities we serve: thank you.”

We extend our sincere appreciation to Representative Johnson, who actively championed the credit union cause to his colleagues in Congress. His leadership was instrumental in reinforcing the vital role credit unions play not only in the Dakotas, but across the country in promoting financial health and empowering local communities.

Olson continued, “I also want to extend a heartfelt thank you to our credit union advocates across North and South Dakota. Your voices, your outreach, and your passion for our mission made this moment possible. This victory is yours, too.”

As Congress enters the Memorial Day recess, H.R. 1 now moves to the Senate, the third leg of what we’re calling a 1600-meter dash. If the Senate passes a different version of the bill, a conference committee will need to reconcile the two before final passage can be sent to the President’s desk.

While our work is not finished, today is a day to celebrate. Our advocacy team remains optimistic that our Dakota Senate delegation will continue to stand with credit unions, and we are committed to ongoing engagement to ensure our message—Don’t Tax My Credit Union—remains front and center.

To all Dakota credit unions: thank you for your unwavering support, whether through advocacy letters, lawmaker outreach, or by sharing the credit union story. Your voice made the difference.

Let’s move forward with momentum, unity, and purpose.

Stay tuned for more updates!