Legislative Update with Kenley

DakCU advocates for CDFI Fund restoration and applauds Senate approval of the FY2026 NDAA with key credit union provisions.

By Kenley Lamberty, Director of Political Strategy and Engagement
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Government Shutdown Update
As the government shutdown continues, credit unions continue to stand by their members, offering support during both prosperous and challenging times. We are actively encouraging our members of Congress to pass the necessary funding legislation to restore stability and promote financial well-being.
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Government Shutdown Assistance Resources
 
DakCU Urges Congressional Support for CDFI Fund and Staff Reinstatement
The Dakota Credit Union Association (DakCU) has formally urged members of Congress to sign on to a bicameral letter led by Senator Mike Crapo (R-ID) and Congresswoman Young Kim (R-CA), addressed to Treasury Secretary Scott Bessent and OMB Director Russ Vought. The letter stresses the importance of the Community Development Financial Institutions (CDFI) Fund in supporting economic development, particularly in rural communities and South Dakota tribal areas. In response to DakCU’s outreach, Senator Mike Rounds and Representative Dusty Johnson have signed on in support of the letter, reinforcing their commitment to the communities served by credit unions and CDFIs.
 
In light of the Treasury Department’s reduction-in-force plans that eliminated all CDFI Fund staff, DakCU emphasized the urgent need to restore the Fund’s workforce and maintain its operational capacity. Credit unions representing the largest group of certified CDFIs play a vital role in expanding access to capital, promoting financial inclusion, and strengthening underserved communities.
 
DakCU continues to advocate for the Fund’s preservation and the reinstatement of its staff, recognizing that the value CDFIs bring to local economies far outweighs any perceived cost.
 
Senate Passes Fiscal Year 2026 NDAA with Key Credit Union Provisions
In a strong bipartisan vote of 77–20, the Senate on Thursday approved the Fiscal Year 2026 National Defense Authorization Act (NDAA). The legislation includes the NCUA Central Liquidity Facility (CLF) Enhancements Act, a measure aimed at permanently restoring critical provisions that expand liquidity access for credit unions particularly benefiting smaller institutions without imposing costs on taxpayers.
 
The NDAA also features an amendment to bolster the CDFI Fund, reinforcing support for mission-driven financial institutions serving underserved communities. Introduced by Senators Alex Padilla (D-CA) and Kevin Cramer (R-ND), the CLF enhancements make permanent the temporary liquidity improvements enacted during the COVID-19 crisis, ensuring credit unions retain access to vital financial tools in times of economic uncertainty.
 
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