Legislative & Regulatory Update

North Dakota credit unions advocated for Field of Membership expansion and secured a win with SB 2028, enhancing financial oversight at ND Credit Union Legislative Day.

ND credit union advocates with ND Governor Kelly Armstrong

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

A Day of Influence: Credit Unions Take Center Stage at the Capitol
The morning air was crisp as credit union professionals gathered at the Heritage Center, coffee in hand, ready for a day that would test their advocacy muscle. This wasn’t just another day at the Capitol—it was a day where the financial future of North Dakota’s credit unions was on the line. By the time the meetings wrapped, there was a sense of accomplishment in the air. The conversations had been intense, the stakes high, but the results. Worth every moment.

A Two-Hour Deep Dive: Field of Membership Takes the Spotlight
The morning kicked off with a pivotal discussion with Deputy Commissioner Krebs and Commissioner Kruse of the Department of Financial Institutions (DFI). Field of Membership (FOM) was the main event—a topic credit unions have been fighting to expand for years. The message from the credit union side was clear: restrictive FOM policies stifle growth, limit access for potential members, and ultimately hurt North Dakotans who rely on credit unions for financial services.

But the DFI’s response? A firm stance that they would stay out of it, labeling FOM a policy-based decision that belonged in the hands of lawmakers. While it wasn’t the outright support credit unions had hoped for, it was still valuable information—it meant the fight for FOM would have to continue in the legislature. And as the day would later reveal, that fight had some key allies.

A Photo, A Governor, and a Conversation on Community Impact
When Governor Kelly Armstrong joined for a brief but productive photo op, the conversation naturally shifted to property tax reform—one of his top legislative priorities. But this wasn’t just about policy. Credit unions found a unique angle, tying in their deep-rooted support for local communities and sports teams across North Dakota. Western Cooperative Credit Union, based in Dickinson, was brought up as a shining example of how credit unions directly invest in local athletics, providing sponsorships and support to young athletes. The governor, a former coach himself, appreciated the connection.
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It was a reminder of why credit unions are different from big banks—because they don’t just operate in North Dakota, they are North Dakota.

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Legislative Heavyweights Weigh In: SB 2364, Budget Wins, and What’s Next
The afternoon was where the real advocacy work came into play. Senate Majority Leader David Hogue sat down with credit union leaders for a candid discussion on SB 2364, a bill that has posed significant challenges. While he had given credit unions a crucial green vote on FOM during the 2023 session, he agreed that the restrictions on membership need to be lifted for good. The consensus? This fight isn’t over, and legislative action will be necessary to break down these barriers in the future.

On the other side of the aisle, Senate Minority Leader Kathy Hogan provided insight into the broader challenges credit unions could face. With potential funding cuts from the federal level looming, Hogan warned of some shaky policies that could emerge as a result. It was a reality check, but one that reinforced why credit union advocacy is more critical than ever.

Both leaders agreed on one thing: FOM would need to come back before the legislature. The only question was when. For some, 2027 seemed like the most realistic shot—but that doesn’t mean credit unions should wait to build momentum.

A Legislative Victory: SB 2028 Crosses the Finish Line
If the day had started with uncertainty about FOM, it ended with a clear advocacy win. SB 2028 passed its final vote nearly unanimously—a huge step forward for credit unions. This bill removes the budgeting process for the Department of Financial Institutions from the appropriations committee and instead places it under the oversight of the State Credit Union Board and State Banking Board.

Why does this matter? Because it means more full-time employees at the DFI, better resources to address cybersecurity risks across the state, and ultimately, a stronger financial landscape for North Dakota. Credit unions now have a greater say in shaping the regulatory environment, and that’s a victory worth celebrating.

Looking Ahead: The Work Isn’t Over
As credit union professionals wrapped up their day, there was a shared feeling of progress—but also an understanding that the fight continues. Field of Membership remains a key issue, and while SB 2028’s passage is a major step forward, credit unions will need to keep pushing to ensure long-term legislative success.
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One thing is certain: North Dakota’s credit unions aren’t backing down. They’re showing up, making their voices heard, and shaping policy in real-time. And if today was any indication, they’re doing it with determination, strategy, and an unwavering commitment to their members.

ND credit union advocates at ND Capitol

DakCU's Jeff Olson & John Alexander and TCCU's Kalli Schell, Ron Merrit, & Tyler Neether with ND Senate Majority Leader David Houge

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