Thank You, Senator Thune, for Standing Up for Credit Unions and the People They Serve
By Jeff Olson, President/CEO, Dakota Credit Union Association
At a time when many Americans are navigating financial stress and uncertainty, having access to safe, affordable financial services has never been more important. That’s why South Dakotans and credit union members across the country should take note and be grateful for Senator John Thune’s continued leadership and support for credit unions.
As Senate Majority Leader, Senator Thune plays a pivotal role in shaping policies that impact everyday Americans. His vocal support for credit unions and preserving their not-for-profit tax status sends a strong message: he’s standing with working families, small businesses, farmers, veterans, teachers, and the people who live and work in our rural and underserved communities.
Credit unions aren’t just financial institutions. They are member-owned cooperatives deeply embedded in their local communities. Nationwide, they serve over 142 million members – roughly 43% of the U.S. population. These are not Wall Street giants. They are Main Street champions. Unlike for-profit banks, credit unions reinvest earnings into their members through lower loan rates, higher savings returns, and fewer fees.
Here in South Dakota, credit unions generate more than $572 million in annual economic output and support nearly 3,000 jobs. In 2024 alone, South Dakota credit unions returned over
$96 million in direct benefits to members, while also generating $63 million in tax revenue, including $9 million in state taxes. That’s an important contribution to our state’s infrastructure, education, and public services.
Senator Thune understands that changing the tax treatment of credit unions would do more than increase costs – it would limit financial choice, drive people toward high-interest lenders and credit cards, and weaken the economic stability of our communities, especially our rural communities. If credit union rates on loans are no longer competitive, many families will be left with no other option than to borrow under far more burdensome terms.
In rural areas especially, credit unions are often the only locally governed financial institution. They’re the ones sponsoring youth sports, providing free financial education in schools, helping first-time homebuyers, and offering essential services to people who may not otherwise be served. They are not just part of the financial system; they are part of the community fabric.
Public support for credit unions is overwhelming. Nationwide, 87% of voters view them favorably, and over 90% of members trust their credit union. In an era where partisanship divides, credit unions unite Americans. Senator Thune recognizes this. His leadership mirrors the values of transparency, fairness, and community investment that credit unions embody every day.
As the House of Representatives has already done, the Senate should now follow Senator Thune’s lead on passing the Senate’s reconciliation package, the ‘One Big Beautiful Bill,’ which preserves and protects the tax exemption status of credit unions. Doing so ensures that families and small businesses can continue to rely on these trusted, community-based financial cooperatives.
Credit unions win when their members win and we’re grateful to have a leader like Senator Thune who understands that.
Jeff Olson
President/CEO
Dakota Credit Union Association