As the new administration took office earlier this year, documents began circulating in the House that suggested eliminating the credit union tax-exemption status as a means to fund the reconciliation bill from the House Ways and Means Committee. While the suggestion may have started as an offhand comment, it grew in legitimacy, as did the threat it posed to credit unions and the 142 million members they serve nationwide.

In response, credit unions mobilized to create the Don’t Tax My Credit Union campaign, organizing hundreds of meetings with Representatives to emphasize the credit union difference and the importance of the tax exemption. The campaign and the fight to protect the industry’s tax status were a central focus of this year’s Governmental Affairs Conference and subsequent events, such as the Underground Collision, as well. For months, credit unions have been tirelessly fighting to oppose this drastic change that would have severely impacted credit unions across the country.

Thankfully, the hard work has seemed to pay off, as the House Ways and Means Committee has released its budget reconciliation bill, which will go through markup this afternoon, which notably lacks any text regarding credit unions and/or a change in their tax status. This is a huge win for the industry and reflects the efforts of thousands of credit union advocates, the thousands of meetings they held, and the over 771,000 letters they sent.

Following the news, America’s Credit Unions President/CEO Jim Nussle released a statement thanking the House Ways and Means Committee as well as its Chairman, Jason Smith, for protecting credit unions and “recognizing their value.”

He went on to say that “Together with leagues, credit unions, and industry partners, we have worked hard to show the impact credit unions have on their 142 million members and communities. We remain engaged with the committee as it considers amendments through the markup process to ensure no new tax is added on credit unions. Credit unions are here to strengthen Main Street, and we will keep our momentum.”

While credit unions can and should celebrate this victory, they should not get too complacent. It is important to remember that the reconciliation bill has not been finalized and still needs to be marked up, approved, and the final bill sent to the House floor for a vote. Therefore, as Nussle noted in his statement, there is still plenty of time throughout the process for amendments to be made that could impact the credit union tax status.

As such, credit unions must continue advocating and participating in the Don’t Tax My Credit Union campaign to ensure the safety and soundness of the industry. Credit unions can learn more about the campaign and how to get involved on its website.