Nashville, Tenn. (March 12, 2025) — With Congress considering legislation to reform the nation’s tax policy, the Independent Community Bankers of America (ICBA) today called on policymakers to end unwarranted federal tax subsidies for the nation’s largest credit unions.

A new policy resolution that ICBA introduced at this week’s ICBA LIVE 2025 national convention in Nashville, Tenn., calls on lawmakers to end the federal tax exemption for credit unions with $1 billion or more in assets or to establish tax parity between credit unions and tax-paying community banks.

“With credit union acquisitions of tax-paying community banks reaching a record high last year, the growing skepticism of credit unions’ tax and regulatory exemptions must evolve into policymaker action,” ICBA President and CEO Rebeca Romero Rainey said. “Eliminating the federal tax exemption for credit unions over $1 billion in assets will help ensure taxpayer dollars no longer tilt the competitive marketplace, subsidize community banking consolidation, and result in fewer choices for consumers and small businesses.”

The new policy resolution comes as policymakers increasingly scrutinize credit union acquisitions of community banks, such as the FDIC last year advancing a statement of policy on bank mergers that for the first time explicitly stated that additional scrutiny may be needed for deals involving credit unions.

Meanwhile, consumers increasingly support reforms to credit union policies, with recent ICBA polling conducted by Morning Consult finding that 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.

ICBA’s new policy resolution on credit unions is among its legislative and regulatory policy objectives for 2025. Developed and approved by ICBA volunteer community bankers, these resolutions will guide ICBA advocacy in the coming year and reflect its unique mission of creating and promoting an environment where community banks flourish.

Interested in discussing this and other topics? Network with and learn from your peers with the app designed for community bankers. Join the conversation with ICBA Community.

Approved by ICBA’s Policy Development Committee and scheduled for final approval this week by ICBA’s board of directors, which is made up of community bankers from coast to coast, ICBA’s policy resolutions are based on the principles of:

  • Promoting a balanced and competitive financial services landscape for American consumers and businesses.

  • Advocating common-sense and appropriately tailored laws and regulations for community banks.

  • Advancing responsible innovation.

  • Protecting the safety and soundness of the financial system.

ICBA looks forward to continuing to work with the Trump administration and the 119th Congress to advance pro-community bank reforms outlined in its 2025 Policy Resolutions and its “Repair, Reform, and Thrive” plan.

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.