Washington, D.C. (May 28, 2025) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement after a new acquisition of a tax-paying community bank in Arizona by a tax-exempt credit union.
“The credit union industry’s tax and regulatory exemptions have rightfully been scrutinized in recent months, and with another acquisition of a tax-paying community bank by a tax-exempt credit union, the need for policymaker action is urgent.
“Credit unions operate far outside their congressional mandate of serving people of modest means with a defined membership, and they continue to exploit their tax exemption with egregious activities like financing multimillion-dollar NFL stadium naming rights deals, buying private planes for their senior executives, and raising funds from Wall Street hedge funds. Policymakers must address this taxpayer-subsidized consolidation brought about by growth-obsessed credit unions taking advantage of loopholes and act to preserve market choice for consumers and small businesses.”
Consumers increasingly support reforms to credit union policies. Recent ICBA polling conducted by Morning Consult shows 62% of U.S. adults say credit unions that operate like banks should have to pay taxes like banks and 62% support a congressional investigation of the credit union industry’s tax and regulatory exemptions.
Recent media coverage confirms the urgency, with Banking Risk & Regulation reporting on opaque executive compensation at nonprofit credit unions, CU Daily writing that some in the credit union industry are concerned about mergers of large credit unions, and Banking Dive highlighting ICBA’s calls for Congress to eliminate the federal tax exemption for credit unions over $1 billion in assets.
ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress urge lawmakers to address credit unions’ exploitation of tax and regulatory advantages. Further, a policy resolution that ICBA introduced earlier this year formally calls on policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.
