Credit Unions Should Pay for Space and Services in Federal Buildings

The Federal Credit Union Act permits the free allotment of space and services in Federal buildings to credit unions serving federal employees.

Section 1770 of the Federal Credit Union Act was adopted during the Great Depression, when credit unions were in their formative years.

However, credit unions are no longer in their formative years. Many credit unions are financially viable and are no longer in need of this taxpayer assistance.

Yet, credit unions continue to receive free space and services from the Federal government.

This issue is not new. A 1971 study by the Government Accountability Office (GAO), formerly the General Accounting Office, recommended that credit unions be required to pay rent for space and services they use in Federal facilities.

GAO wrote:

We believe that a uniform Government-wide policy should be established to require credit unions which have attained an adequate degree of financial stability to pay for Federal space and related services which they use. We believe also that such a policy 1s warranted because many of the credit unions occupy substantial amounts of space and do not need Government flnancial assistance since they have attained a degree of financial stability that would enable them to pay for space, services, and personal property.

The GAO further noted that other private organizations serving federal employees and veterans were paying the Federal government for space and services provided.

There is no reason why credit unions should be granted this preferential treatment. Credit unions should pay for space and services provided by the Federal government.

This is just another taxpayer subsidy to credit unions that needs to end.