May 6, 2025 3 min read

As the leader of a local, member-owned credit union, I see every day how affordable financial services make a real impact on people’s lives. From members buying their first car to their first home, credit unions are helping families and small businesses build their futures. Our success is measured by how well we serve the financial needs of our members, not by the amount of profit we generate.

But that mission is being challenged.

Congress is reviewing potential changes to the federal tax code, and among the proposals being considered is the removal of the credit union tax exemption – something that’s been in place for more than 100 years. Eliminating it would hurt credit unions, and our members, but more importantly, it would hurt bank customers too. The options that credit unions provide help to keep for-profit financial institutions from charging even higher fees and loan rates, in the interest of rewarding their investors and stockholders. A recent independent study commissioned by America’s Credit Unions showed that a 50% reduction in credit union market share would cost bank customers an estimated $22.8 billion a year in higher loan rates and lower deposit rates.

The Consumer Financial Protection Bureau’s 2023 Market Report on credit card terms leaves no doubt that credit unions offer lower credit card interest rates than banks across all risk tiers.

Credit unions are, in fact, a firewall that helps to keep banking affordable.

The tax exemption isn’t a loophole. It’s a recognition of our cooperative structure and purpose. Unlike banks, we don’t return profits to shareholders. We return them to our members through lower fees, better rates, and reinvestment in our communities.

In 2024, CHROME Federal Credit Union paid members over $168,000 in rewards. Additionally, we provide members and the community with certified financial counselors available at all branches at no cost. Each year, we have saved members hundreds of thousands of dollars.

When seven employees of Washington Steel Corp. each contributed $5 in 1971, they formed an organization to meet the financial needs of their coworkers and families. After 54 years, we’ve grown to have assets of $200 million, serving over 13,500 member-owners locally.

Now is the time to raise our voices. I encourage credit union members, staff, and neighbors to learn more and take action by visiting CrossState Credit Union Association’s Grassroots Action Center or DontTaxMyCreditUnion.org.

Let’s protect the credit union difference – together.

Bob Flanyak, Canonsburg

President/CEO/Treasurer

CHROME Federal Credit Union