by Chesney Garnos, Director of Political & Grassroots Affairs Don’t Tax My Credit Union Last week, the House Rules Committee worked through the night on Wednesday before the full House voted Thursday on H.R. 1—the “one, big beautiful bill”—which passed by a narrow 215-214 margin, preserving the credit union tax exemption. Ahead of the vote, lawmakers received a letter signed by 617 credit union presidents and CEOs, urging them to safeguard the tax status during the floor debate. The Senate is expected to take up the budget reconciliation package when Congress returns from the Memorial Day recess this week. If the Senate amends the bill, both chambers will need to reconcile any differences and vote again before it can be sent to the President for signature. GENIUS ACT The United States Senate will begin consideration of the GENIUS Act on June 2. This legislation establishes a new federal framework for regulating the issuance of stablecoins. As the first bill from the Senate Banking Committee to reach the Senate floor in eight years, it is expected to serve as a platform for a wide range of financial services-related amendments. Among those is Senator Marshall’s “Big Box Bailout” bill—the Credit Card Competition Act—which would effectively impose price controls on interchange fees. We’re pleased to report that if this amendment is introduced during the committee process, Senator Rounds has committed to placing a hold on it, preventing it from advancing out of committee.  Q&A with ND and SD GAC Chairs! Advocacy is a cornerstone of the credit union movement, ensuring that these not-for-profit financial institutions can continue to serve their members and communities effectively. It involves actively supporting policies, engaging with lawmakers, and building public awareness to create a favorable environment for credit unions. For credit unions in North and South Dakota, advocacy is particularly critical for a variety of reasons. This is why at DakCU’s Annual Summit, we took the time to dive into our advocacy efforts as an association by having a panel! Two of our panelists included ND Chairman Steve Davis and SD Chairman Joey Rotert. Her are some additional insights from the post-panel Q&A session:
How would you describe the word advocacy? Advocacy refers to the act of supporting or promoting a cause or policy. In the context of credit unions, it involves efforts to influence legislation, regulations, and public opinion to ensure a favorable environment for these member-owned financial institutions. Advocacy ensures that credit unions are positioned to thrive and effectively serve their members. Why is advocacy critical for our credit unions in North and South Dakota? Advocacy is essential for credit unions in North and South Dakota for several key reasons. It helps protect their tax-exempt status, which is crucial for their ability to provide affordable financial services. Advocacy also plays a vital role in shaping laws and regulations that directly impact credit unions, such as lending practices, membership access, and operational flexibility. Additionally, it allows credit unions to build strong relationships with policymakers, raise public awareness about the credit union difference, and secure political support—all of which ensure that credit unions can continue to serve their members and contribute to the local economy. What is the role of the ND and SD Governmental Affairs Committees? The Governmental Affairs Committees (GACs) in North and South Dakota play a pivotal role in advocating for credit unions within their respective states. Operating under the Dakota Credit Union Association (DakCU), these committees help shape legislative and regulatory landscapes that affect the credit union sector. They engage with lawmakers and regulators to ensure that policies align with the interests of credit unions and the communities they serve, ensuring that the credit union model remains strong and sustainable in both states. How do the ND and SD GACs influence the association’s advocacy efforts (think PAC, legislative, grassroots)? Both the North Dakota and South Dakota GACs actively participate in shaping the future of credit unions through Political Action Committees (PACs), legislative engagement, and grassroots advocacy.
Together, these efforts ensure that the GACs can effectively drive policy decisions and influence the legislative process. How can anyone get involved with advocacy efforts? Even if individuals are not members of the Governmental Affairs Committee, there are plenty of ways to get involved with DakCU's advocacy efforts:
What is something you would like to highlight from the ND GAC’s perspective in 2024: In 2024, the North Dakota Governmental Affairs Committee (ND GAC) made notable strides in fostering relationships and advancing credit union priorities. One of the key highlights was hosting North Dakota Legislative Day in Bismarck, which brought together credit union leaders, legislators, and staff to discuss critical policy issues. These face-to-face conversations, including valuable time spent with Governor Kelly Armstrong, may have seemed small in the moment, but they were essential for laying the groundwork for long-term policy success. By building trust and educating lawmakers about the policy issues affecting our members, we’ve positioned ourselves to create the best possible legislative outcomes for the future. On the federal side, our Capitol Hill visits were also a success. We met with the entire North Dakota congressional delegation, and as a result, secured their full support for the Homebuyers Privacy Protection Act in 2024. This important bill seeks to put an end to the predatory practice of trigger leads, which has been negatively impacting our members and credit unions alike. While the bill didn’t quite make it across the finish line last year, we are excited to share that it has been reintroduced this April. Once again, we have strong support from our delegation, and we are hopeful that this bill will finally pass, providing much-needed relief by dramatically reducing the barrage of spam calls, texts, and emails from irresponsible players in the mortgage industry. What is something you would like to highlight from the SD GAC’s perspective in 2024: In 2024, the South Dakota Governmental Affairs Committee (SD GAC) placed a strong emphasis on building relationships and raising PAC dollars, marking a pivotal year for the committee’s advocacy efforts. Strengthening relationships with key policymakers, both at the state and national levels, was a crucial aspect of the committee’s strategy, ensuring that credit unions' voices were heard and their priorities were addressed in legislative discussions. A highlight of the year was the South Dakota Par for the PAC event, which played a central role in fundraising success. This event brought together credit union leaders, stakeholders, and legislators for a dynamic evening of networking and giving. Beyond fundraising, it created a valuable opportunity to connect, educate, and align the credit union community with legislative priorities for the year ahead. By contributing to the PAC, participants ensured that credit unions had the necessary political support to advance their interests. Additionally, the SD GAC made significant progress in building relationships at the national level, engaging with South Dakota's federal representatives, including Leader Thune, Senator Rounds, and Representative Johnson. This expanded network further solidified credit unions' presence and influence in both state and national policymaking. For any questions or other advocacy-related queries, please don't hesitate to reach me at [email protected]. Comments are closed.
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