Federal Advocacy Update

Appropriations Gridlock; NCUA Board Update; and Advocacy Wins for Credit Unions.

By the DakCU Advocacy Team 

NCUA Board Status Back in Limbo
The ongoing legal saga surrounding the leadership of the National Credit Union Administration (NCUA) took another dramatic turn late Friday. On July 25, the U.S. Court of Appeals for the D.C. Circuit issued an administrative stay of a lower court ruling that had temporarily reinstated ousted NCUA board members Todd Harper and Tanya Otsuka.

The court’s order blocks their return to the board while the administration’s appeal is under review. The three-judge panel emphasized that the stay is procedural and not a ruling on the merits of the case. Harper and Otsuka have until August 4 to respond to the emergency motion; the administration has until August 11 to file a reply.

To recap: Harper and Otsuka were fired in April by President Trump, prompting a legal challenge that argued their removal violated the Federal Credit Union Act, which does not provide the president with the authority to dismiss NCUA board members at will. On July 22, U.S. District Judge Amir Ali ruled in their favor, allowing both to participate in the NCUA board meeting on July 24.

However, the appeals court stay issued on July 25 means the NCUA board is once again down to one member Chairman Kyle Hauptman, a Republican appointee. No board meeting is scheduled for August, and the matter may ultimately be decided by the Supreme Court.

The Dakota Credit Union Association strongly (DakCU) supports a fully staffed, bipartisan, three-member NCUA board to ensure regulatory stability and accountability for the credit union system.

New Bipartisan Loan Maturity Legislation Introduced
On the legislative front, a bipartisan group of lawmakers led by Rep. Scott Fitzgerald (R-WI) introduced the Expanding Access to Lending Options Act, a bill that would extend the credit union loan maturity limit to 20 years and authorize the NCUA to go even further for certain loans.

The bill combines provisions from two previous credit union-backed bills and represents a significant step forward in modernizing credit union lending capabilities. It would give credit unions the flexibility to structure loans that better meet the long-term needs of members, especially for home improvement, education, and refinancing.

This bill delivers impactful regulatory evolution to increase loan maturity limits and remove red tape allowing credit unions to do what they do best: support the financial well-being of their members,” said America’s Credit Unions. The DakCU Advocacy team is urging both Congressman Dusty Johnson (SD) and Congresswoman Julie Fedorchak (ND) to support this effort and for a swift passage in the house.

Appropriations Debate Intensifies in the Senate
Last week, the U.S. Senate officially opened debate on the Fiscal Year 2026 Military Construction (MilCon-VA), Veterans Affairs, and Related Agencies appropriations bill. Senate Republican Leader John Thune (R-SD) floated a proposal to advance a "minibus" package that would also bundle the Agriculture-FDA and Commerce-Justice-Science appropriations bills.

However, several Senate Republicans pushed back against the minibus approach, and it remains unclear whether the Senate will proceed with a broader package or advance the MilCon-VA bill as a standalone measure.

Meanwhile, the Office of Management and Budget signaled more turbulence ahead. Director Russell Vought indicated that the administration may propose additional rescissions packages with further federal spending cuts before the September 30 deadline heightening partisan tensions already inflamed by the administration’s most recent rescissions proposal, which narrowly passed two weeks ago despite unified democratic opposition.

Still, there were signs of progress. The Senate Appropriations Committee advanced both the FY26 Interior-Environment and Transportation-HUD bills with bipartisan support. This week, the committee is expected to mark up both the Labor-HHS and Defense bills, with more markups scheduled for September. However, sharp differences in funding priorities between the house and senate are expected to complicate final negotiations this fall.

Senate Considers Dozens of Nominations Ahead of Recess
With the August recess looming, the senate is expected to vote on several pending nominations this week, potentially staying into the weekend to wrap up the calendar. As of now, 144 nominations await action. Majority Leader Thune is expected to offer democrats a package deal to move multiple nominees before the break.

Credit Union Advocacy Pays Off at the FCC
In a major advocacy win, credit unions successfully urged the Federal Communications Commission to delay for one year implementation of a provision in its updated Telephone Consumer Protection Act rules. The provision would have barred credit unions from making autodialed or prerecorded calls or texts to members after revocation of consent, even for critical account-related communications.

America’s Credit Unions and industry partners emphasized the need to balance consumer protection with the operational necessity of reaching members with important updates. The delay gives credit unions time to advocate for full removal of the problematic rule and propose more practical revisions, including:

• Allowing more flexibility in processing revocations of consent
• Removing the 2022 limit of three exempt informational calls per 30 days to residential numbers
• Eliminating restrictions on placing urgent fraud alerts or data breach notifications

DakCU will continue monitoring and engaging on this issue to ensure credit unions retain effective tools to serve members responsibly.

​Stay Connected
Reach out with any questions or for more details to Jeff Olson or John Alexander.​