ICBA said that a credit union paying for NFL stadium naming rights is the latest example of how credit unions are violating the limits established by Congress to justify their federal tax exemption.
Background: The Washington Commanders announced that Northwest Federal Credit Union inked a deal to pay for the naming rights, which reportedly cost $8 million per year.
Details: In a national news release, ICBA President and CEO Rebeca Romero Rainey said modern credit unions exploit their tax exemption to subsidize multimillion-dollar executive pay, outsized marketing budgets, lavish headquarters, and an ongoing surge in acquisitions of taxpaying community banks.
ICBA View: ICBA has repeatedly called on Congress to investigate the credit union tax and regulatory advantages, including in a recent American Banker op-ed from Romero Rainey. In a recent letter to House Ways and Means Committee members, it called on lawmakers to review credit union tax exemptions.
Public Opinion: ICBA polling released earlier this year showed Americans support reforms to policies that arbitrarily favor credit unions. According to the polling conducted by Morning Consult, 68% of adults said credit union customers should have the same Community Reinvestment Act protections that banks provide, while 54% said Congress should investigate whether the credit union tax exemption is still warranted.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on members of Congress to hold a hearing on credit union policy. Additional resources are available on the ICBA website.
