When you ask credit union employees what they love most about their work, the answer is often similar: the credit union difference. Whether it’s the industry’s “people helping people” philosophy or the mission-driven focus on financial well-being, credit unions stand apart from traditional banks. As not-for-profit, member-owned institutions, credit unions offer lower fees, better interest rates and personalized service – all while reinvesting in the communities they serve.

But with a new administration and rapid regulatory changes happening now, the credit union movement could be at risk. Now more than ever, industry professionals and members alike need to be dialed into what’s happening on the state and national levels to protect the credit union movement. It is time to activate grassroots efforts to ensure that lawmakers understand the vital role credit unions play in our financial landscape.

Why Advocacy Matters for Credit Unions

Credit unions have a long history of standing up for their members and communities. Unlike traditional banks, credit unions do not have the same financial resources for lobbying efforts. However, what they lack in funding, they make up for in numbers. Credit unions represent more than 140 million members nationwide – an incredible grassroots force that, when mobilized, can make a significant impact.

A key example of the power of advocacy was the passage of the Credit Union Membership Access Act (H.R. 1151) in 1998. When the credit union tax-exempt status was challenged, the industry rallied, engaging members and employees in a massive advocacy campaign. The result was a landmark victory that secured credit unions’ ability to serve their communities without unfair taxation. Today, that same advocacy remains essential, especially as proposed interchange regulations, regulatory consolidation and threats to credit unions’ tax-exempt status continue to surface in legislative conversations.

The Current Advocacy Landscape

While credit unions often collaborate with banks on certain policy issues – like interchange regulations – they face unique challenges that require a distinct advocacy approach. One ongoing concern is the potential reassessment of credit unions’ tax-exempt status. Policymakers need to be reminded that credit unions operate differently from banks. Their not-for-profit structure allows them to return earnings to members through lower loan rates, higher savings yields and community investments. Losing this tax-exempt status could negatively impact millions of members who rely on credit unions for affordable financial services.

That’s why advocacy isn’t just the responsibility of industry leaders – it’s something every credit union professional and member should take part in. National and state credit union associations provide valuable tools to help individuals contact legislators, share credit union success stories and participate in grassroots campaigns. America’s Credit Unions (ACU) website offers resources to make grassroots advocacy easier and more impactful.

Using Data to Strengthen Advocacy Efforts

It’s true that people respond well to storytelling, but when the stories are backed up by data, the story is even stronger. Combining personal stories with data strengthens advocacy efforts. Credit unions should leverage available tools such as ACU’s advocacy dashboard to highlight their local economic impact. Demonstrating how credit unions provide lower mortgage rates, reduced fees and financial services to underserved populations strengthens the case for why they deserve continued legislative support.

For example, the industry could benefit from highlighting the role of Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), which specifically serve low-income and minority communities. These institutions provide critical financial support where traditional banks may not operate, reinforcing the need for continued backing from lawmakers.

How to Support Credit Union Advocacy

Advocacy is an ongoing effort, not a one-time initiative. Credit unions and their members can take several steps to ensure their voices are heard:

Engage with Elected Officials: Credit unions should maintain regular communication with local, state and federal legislators to keep credit union priorities on the agenda. Events like ACU’s Governmental Affairs Conference (GAC) give credit union professionals the opportunity to unite and educate legislators about the positive impact of their work.
Participate in Grassroots Campaigns: Every time a call-to-action is issued – whether it’s an email to Congress or attending a legislative event – credit union professionals and members should take part.
Share Success Stories: Credit unions make a difference in their communities every day. From supporting local businesses to funding financial literacy programs, these stories should be shared with legislators and the public. Don’t be afraid to brag about the good credit unions do!
Stay Informed: Keep up with advocacy updates from industry organizations, such as Velera and the Electronic Payments Coalition, which help credit unions stay ahead of legislative changes and mobilize when needed.

The credit union movement thrives because of its unwavering commitment to members and communities. Credit unions have a regular cycle of getting on the calendars of elected officials; however, sustaining this mission requires ongoing advocacy at every level, and now is not the time to take our foot off the gas. Much like the critical moment that our industry faced in the 90s, it is time for credit unions to join forces to protect our members and our communities.

By raising awareness, engaging with legislators and leveraging data-driven storytelling, credit unions can continue to protect their tax-exempt status and ensure their ability to serve future generations. Staying informed with advocacy updates and raising your hand at the local level can make a significant difference. When credit unions advocate for themselves, they are ultimately advocating for the financial well-being of millions of Americans.