Capitol Connection

DakCU is keeping credit unions informed as they support members and push for stronger protections during the shutdown.

From the Dakota Credit Union Association (DakCU) and America's Credit Unions
 
Shutdown Stretches into Third Week
The federal government remains shut down as the lapse in funding extends into a third week, with layoffs now occurring across at least ten departments and agencies. The Senate returns to session today following a brief recess in observance of Indigenous Peoples Day, while the House remains in-district.
 
Happening this week:

• Thursday: The credit union movement celebrates International Credit Union Day.

• Friday: Comments are due to the Treasury Department Friday on strategies to combat digital fraud. 

 
No hearings are currently scheduled on Capitol Hill. America’s Credit Unions continues to monitor developments and encourages credit unions offering member assistance to share their efforts via the Government Shutdown Assistance webpage.

“We continue to closely monitor the disruptions caused by the government shutdown and remain in regular communication with our partners at the national level, as well as here in the Dakotas. DakCU will keep our credit unions informed of any developments or actions that may impact their operations or their members,” says DakCU Interim President/CEO George McDonald.
 
CDFI Fund Impact
The Trump Administration announced Friday that permanent reduction-in-force (RIF) plans are being implemented, and reports indicate that the Treasury Department's plan eliminates all staff of the Community Development Financial Institutions (CDFI) Fund. 
 
“We have seen reports that the Treasury RIF has eliminated all CDFI Fund staff,” said Jim Nussle, America’s Credit Unions President/CEO. “Cutting this staff would effectively cease the fund’s operations and significantly impact CDFI credit unions and communities across the country. We urge Congress to swiftly reach a funding agreement.”
 
Nussle emphasized that “the consequences of the shutdown are ramping up,” noting that credit unions are once again stepping up to support members through hardship. Credit unions make up the largest group of certified CDFIs 444 of 1,375 as of August 12, playing a vital role in strengthening local economies.
 
‘People Helping People’ in Action
In a recent CUToday op-ed, Nussle highlighted the many ways credit unions are supporting members during the shutdown. Relief measures include 0% or low-interest loans, extended lines of credit, paycheck advances, waived fees, and loan forbearance options.
 
“These are just a few examples, coast to coast, showing how credit unions are standing with their members and communities who need a trusted financial partner,” Nussle wrote. “The credit union industry’s mission of people helping people is clear in times like these. People can count on credit unions.”
 
During the 2019 shutdown, nearly half of federal workers fell behind on bills, 27% missed a mortgage or rent payment, and 62% depleted most or all of their emergency savings underscoring the need for credit union support.
 
Unified Action Against Rising Fraud Threats
In a CUInsight op-ed, Andrew Morris, America’s Credit Unions Director of Innovation and Technology, called for coordinated action on surging fraud losses.
 
“Enhanced tools to fight fraud and protect members are desperately needed,” Morris wrote. He urged policymakers to modernize reporting requirements and improve early-warning systems, education, and information sharing.
 
Standing Together
From supporting members through the shutdown to advocating for stronger fraud protections, credit unions continue to live out their mission of people helping people. DakCU and America’s Credit Unions remain committed to keeping credit unions informed and equipped to serve their members and communities.

For questions please contact DakCU Interim President/CEO, George McDonald; DakCU Director of Legislative & Regulatory Affairs, John Alexander; or Director of Political Strategy and Engagement, Kenley Lamberty.