Breaking News: House Passes HR 1 Leaving CU Tax Status Untouched

In a big win for the credit union movement, this week the U.S. Senate and House passed HR 1 without eliminating credit unions’ tax-exempt status. The bill narrowly advanced in the Senate with a 51–50 vote, and a 218-214 vote in the House. President Trump is expected to sign the bill tomorrow, July 4.

The preservation of credit unions’ not-for-profit tax status comes after months of coordinated advocacy led by America’s Credit Unions, state leagues, and grassroots supporters. Early discussions had flagged the tax exemption as a potential revenue source in the reconciliation process, but the united front proved effective.

Not only is this great news for credit unions across America, but also for the 142 million members they serve.

According to America’s Credit Unions, the Week of Action saw daily outreach to Senate offices, reinforcing the vital role credit unions play in communities. The broader Don’t Tax My Credit Union campaign has generated over 861,000 letters to lawmakers and more than 128 million digital ad impressions, mobilizing nearly 200,000 advocates.

Your involvement—whether through letter-writing, staff outreach, or in-branch promotion—made a difference. We encourage you to thank lawmakers who helped protect the credit union tax status and continue to follow updates as HR 1 moves toward final passage.