Federal Advocacy Update

Challenging banker rhetoric: credit union growth and community impact across the Dakotas and beyond.

By the DakCU Advocacy Team

A recent article in The Banker attempted to portray credit union growth as harmful, but the reality in the Dakotas and across the country tells a very different story. Credit unions are not-for-profit, democratically governed financial cooperatives, and their growth is rooted in one simple principle: delivering more value to members and communities.

Credit unions return their earnings to members through better loan rates, lower fees, and investments in local communities. Expansion — whether through mergers, acquisitions, or new branch development — is never about corporate gain. It is about ensuring members continue to have access to affordable financial services, especially when community banks exit small towns or sell to larger institutions. In many Dakota communities, when the local bank branch closes its doors, it is often the credit union that steps in to preserve access, keep staff employed, and continue offering services without shareholder pressure or excessive fees.

This community-first model is what distinguishes credit unions. Their growth is not defined by size, but by mission. Yet critics ignore the broader trend: while banks have shuttered nearly 20,000 branches nationwide since 2012, credit unions have added nearly 500. Many of those new branches serve areas that would otherwise become financial deserts including rural towns and military communities that are so important to the Dakotas.

The numbers tell the story:

• Over half of the members in the nation’s largest credit unions are military families, a key consideration for North Dakota’s Minot Air Force Base and Ellsworth Air Force Base in South Dakota.
• Community bank earnings remain strong, nearly 70% higher than large credit unions in 2024, showing that credit unions are not threatening their survival.
• Only 10% of credit unions nationwide have more than $1 billion in assets, yet these institutions operate more than half of the 900 branches in areas that would otherwise lack financial services altogether.

Despite misleading claims, credit unions are among the most closely regulated financial institutions in the nation. Every merger, expansion, and strategic initiative is thoroughly reviewed by the NCUA or state regulators to ensure decisions are sound and in the best interest of members. Far from being a loophole, the Credit Union Membership Access Act was passed by Congress to expand access to cooperative financial services for all Americans.

For members in the Dakotas, this means local access to financial services they can trust. Whether it’s supporting military families, investing in small-town economies, or simply offering a low-cost loan when it’s needed most, credit unions are committed to people over profits. Growth is not about empire-building — it’s about ensuring no community is left behind.
 
Protecting Credit Unions in the National Defense Authorization Act
As Congress prepares to take up the FY26 National Defense Authorization Act (NDAA) this fall, credit unions across the country and here in the Dakotas are watching closely. While the NDAA is a must-pass piece of legislation that funds our nation’s defense priorities, it has also become a vehicle for last-minute financial services amendments that could directly impact credit unions and their members.

America’s Credit Unions, together with the Defense Credit Union Council and credit union leagues like Dakota Credit Union Association, are working to ensure that harmful provisions stay out of the bill while also pursuing opportunities that strengthen member service. Credit unions serve millions of military families, including those stationed at Minot Air Force Base, Grand Forks, and Ellsworth Air Force Base in Rapid City, making their inclusion in these conversations essential.

In recent years, some banking trade groups have attempted to use the NDAA as a way to advance policies that would weaken the credit union structure, including provisions that could increase costs or limit access for members. Credit unions remain vigilant to keep such language from slipping into the final bill. At the same time, there are opportunities to push for pro-credit union measures that improve financial readiness for service members and their families.

The advocacy strategy is clear: defend against threats and promote opportunities. Every amendment is being tracked, and every proposal is being reviewed through the lens of member benefit whether that member is a young airman in the Dakotas or a retiree in a rural Dakota community.
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As the fall vote approaches, Dakota credit unions can be confident their interests are represented in Washington. Protecting access to affordable financial services for service members, veterans, and local communities remains at the heart of this work. The NDAA process is another reminder of why a strong, united advocacy voice matters for the credit union movement.