Earlier this month, our CEO Joleen Bowman, alongside two other team members, attended the 2025 Governmental Affairs Conference for Credit Unions in Washington, D.C. While there, they gathered valuable insights and served as advocates in the ongoing effort to preserve the not-for-profit tax status of credit unions. But what does this mean for you, and why is it so important? In this post, we’ll break down the “Don’t Tax My Credit Union” movement, the current Congressional tax debate, and how it affects your financial well-being.
The Congressional Tax Debate
Did you know that more than 140 million Americans are members of credit unions? That’s approximately 43% of the U.S. population, and the number continues to grow. In Michigan alone, over 6 million members benefit from the services of credit unions.
Unlike for-profit banks, credit unions operate as not-for-profit financial institutions, putting people—our members—first. This core difference is what makes credit unions so impactful in our communities. Nearly 90 years ago, Congress recognized the value of credit unions and granted them a federal tax exemption to help us continue offering competitive benefits to our members. This exemption enables us to provide lower interest rates, higher dividend rates, financial counseling, and more—tools that help you achieve your financial goals.
Despite credit unions’ popularity with 43% of Americans, we hold just 8.8% of the nation’s total financial assets. The remaining 91.2% are controlled by for-profit banks that prioritize shareholder returns over the interests of the communities they serve. Now, banks are lobbying Congress to remove our tax exemption, hoping to eliminate the competition and increase their own profits. This would not only hurt credit unions, but it would also be a direct burden on you, the consumer.
What’s at Risk?
If Congress decides to reduce or remove the tax exemption for credit unions, the impact could be significant. Not only could this jeopardize the 1.2 million jobs across the country supported by credit unions—including 19,000 jobs in Michigan alone—but it could also harm your financial security.
Here’s what could be at stake:
- Higher interest rates on loans, refinances, and credit cards
- Lower dividend rates on savings accounts, certificates, and money market accounts
- Increased account fees for services
- Less community support through grants, scholarships, and financial literacy initiatives
What You Can Do
Your voice matters, and it’s time to make it heard. We encourage you to take action by reaching out to your U.S. Representatives and Senators to express your support for the continued protection of credit unions. Visit www.donttaxmycreditunion.org, click on the “Take Action” button, and join the movement.
Thank you for choosing Wayne Westland Federal Credit Union as your trusted financial partner for the past 71 years. We look forward to continuing to serve you in the years ahead and ensuring that your financial journey remains secure.
