Legislative Update with Kenley

DakCU urges Congress to restore CDFI funding amid shutdown and NCUA challenges.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement

Government Shutdown Update
As the government shutdown continues, credit unions remain committed to supporting their members through both prosperous and challenging times. With the start of the month approaching, many Americans are expected to miss paychecks—including federal employees and congressional staff—adding urgency to the need for a continuing resolution. SNAP benefits are also set to lapse at the beginning of the month, compounding financial strain for vulnerable households. We are actively urging members of Congress to pass the necessary funding legislation to restore stability and promote financial well-being.

🔗 Government Shutdown Assistance Resources
 
DakCU Urges Congressional Support for CDFI Fund and Staff Reinstatement
The Dakota Credit Union Association (DakCU) is calling on Congress to support a bicameral letter now officially sent led by Sen. Mike Crapo and Rep. Young Kim, addressed to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russ Vought. The letter highlights the critical role of the Community Development Financial Institutions (CDFI) Fund in driving economic development, especially in rural and tribal communities across South Dakota.
 
In response to the Treasury Department’s reduction-in-force that eliminated all CDFI Fund staff, DakCU emphasized the urgent need to restore the Fund’s workforce and operational capacity. Credit unions representing the largest share of certified CDFIs are essential in expanding access to capital, promoting financial inclusion, and strengthening underserved communities.
 
More than 100 lawmakers, including Rep. Dusty Johnson and Sen. Mike Rounds, signed the letter. DakCU continues to advocate for the Fund’s preservation, asserting that the value CDFIs bring to local economies far outweighs any perceived cost.
 
The National Credit Union Administration (NCUA) will hold its public budget hearing on Nov. 5, where it is expected to propose a 20.6% budget cut for 2026.
The reduction includes significant decreases in staffing, contracted services, and travel expenses. Credit union advocates are preparing to present comments urging transparency and clarity around the agency’s reorganization plan and operational priorities.
 
Meanwhile, legal uncertainty continues to surround the agency. Two Democratic board members, Todd Harper and Tanya Otsuka, who were ousted by the Trump administration, are challenging their removals in court. A stay issued by the U.S. Court of Appeals temporarily removed them from the board, leaving Chairman Kyle Hauptman as the sole member. The Supreme Court has been asked to expedite review of the case, which could have broad implications for the independence of financial regulators.
 
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