Off the Record, On the Issues with John

​Big wins: CFPB overdraft rule repealed, legal fight ends, and no credit union threats in draft tax reform.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

In a major win for America’s Credit Unions, President Trump signed into law a Congressional Review Act resolution overturning the CFPB’s overdraft rule—a regulation that was, from the outset, a flawed, burdensome overreach. With the stroke of a pen, what was once a legal gauntlet for credit unions, has now been permanently shelved.

But the real power of this moment goes beyond repeal. This action erects a wall against similar regulatory attempts in the future. It tells the CFPB: not so fast. In response, America’s Credit Unions, along with other plaintiffs, are now withdrawing their legal challenge—a sign of triumph and resolution after months of wrangling.

For many in the credit union movement, this fight wasn’t just about overdrafts. It was about preserving autonomy and financial dignity—about protecting the ability to offer services that members rely on without being hamstrung by unrealistic compliance hurdles.

The day wasn’t done.

That same Friday, the House Ways and Means Committee quietly dropped its initial draft legislation to extend provisions from the 2017 tax reform law. While it's just a first step in what will surely be a long and politically bruising process, there's a critical early takeaway: credit unions are not targeted in the current language. That’s a key, crucial, first-round win.

Still, we know how Washington works.

This is merely the overture, and we expect the full legislative text by Monday afternoon. There’s every chance the language could evolve, and rest assured, we’ll be ready. Our advocacy team is on high alert, dissecting every paragraph and anticipating amendments that could touch our industry.

For credit unions, these two developments—one a dramatic repeal, the other a quiet absence—underscore why vigilance matters. Friday was a good day for credit unions. Let’s make sure the future is even better.

Stay tuned.
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