Off the Record, On the Issues with John

DakCU supports veterans, credit union members, and offers the Roger Heacock Scholarship to attend GAC.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Federal Credit Union Transparency and the Bankers’ Proposal
The Utah Bankers Association letter to Secretary Bessent has recently drafted a letter that asks Treasury to unwind a fifty-year-old regulation under Section 6033 and force federal credit unions to file IRS Form 990, framing this as a basic “transparency” fix. That narrative leaves out two key facts. First, federal credit unions already report extensive information through NCUA Call Reports and examinations, giving regulators and the public a much deeper look at their operations than a Form 990 would. Second, the 1971 exemption was granted because federal credit unions are cooperatives with no outside owners, limited fields of membership, and a separate supervisory regime. Nothing about their growth changes that structure or Congress’s original intent for credit unions to deliver consumer-owned financial services, not investor returns.

In practice, the bankers’ proposal would not improve oversight. It would simply pile an additional federal form and legal review cost on top of existing reporting, hitting small and mid-sized credit unions hardest and diverting dollars away from members and local communities. For those reasons, America’s Credit Unions,  the Dakota Credit Union Association (DakCU), and credit union leagues nationwide are urging House offices to stay off this bankers’ letter and to reject efforts to use the tax code as a competitive weapon against member-owned financial cooperatives.

Supporting Veteran-Owned Businesses and the Role of S. 110
For nearly two years, DakCU has pressed Congress to fix a costly problem in federal law: the federal member business lending cap limits how fully credit unions can support veteran owned small businesses.

That effort now centers on a bipartisan Senate bill, the Veterans Member Business Loan Act (S. 110). The bill would exempt loans made to qualifying veteran owned businesses from the federal member business lending cap. The measure is pending before the Senate Banking, Housing, and Urban Affairs Committee, and Sen. Dan Sullivan has also filed its language as an amendment to the Senate’s fiscal year 2026 National Defense Authorization Act (NDAA). The Senate passed version of the NDAA includes other credit union provisions, while the veteran business lending language remains an offered amendment that national trade groups are still working to move into a final package.

America’s Credit Unions (ACU) recently highlighted S. 110 ahead of a Senate Veterans Affairs Committee hearing. The national trade association noted that many transitioning servicemembers report an interest in starting a business. When a credit union is constrained by the cap, that interest runs into a legal ceiling rather than a concern about the borrower or the project.

For DakCU, the stakes are especially clear in North Dakota and South Dakota. Rural economies depend on small enterprises, and many of those are veteran owned. In these markets, S. 110 can determine whether a credit union has room on its books to support a veteran’s new venture or must turn the member away because of an outdated statutory limit. DakCU has delivered that message to the North Dakota and South Dakota congressional delegations and has coordinated with ACU and other partners, urging action on the bill in committee and in NDAA negotiations.

The recent federal government shutdown has ended under a new funding agreement, and federal operations are restarting. Agencies are working through backlogs, recalibrating programs, and processing delayed payments. For many veterans, federal employees, contractors, and their families in the Dakotas, paychecks and reimbursements will begin to arrive again, but the return to normal will be gradual and some cases will take time to correct.

During the shutdown period, credit unions stepped in. Across the country, institutions offered payment deferrals, emergency loans, fee waivers, and budgeting assistance. In the Dakotas, credit unions adapted these measures to local conditions, working with federal workers in small communities, Guard members between drills, staff at Veterans Affairs facilities, and contractors tied to key federal and defense operations. Many members are still working through accumulated bills and administrative delays even as funding is restored.

In the aftermath, ACU and other national trade associations are collecting examples of how credit unions assisted members and are using those accounts in discussions with congressional leaders and regulators. At the same time, they continue to promote targeted legislation such as S. 110 as part of a longer term strategy to support veterans and their communities.

DakCU is contributing to this work by gathering information from Dakota credit unions and relaying those stories to ACU and to the North Dakota and South Dakota delegations. The association is also asking credit unions to flag cases where members encounter unresolved benefit issues, stalled reimbursements, or other problems that appear to have fallen through the cracks as agencies restart operations. When those situations arise, DakCU can coordinate with congressional offices and agency staff to help connect affected members with the appropriate contacts.

In normal conditions, the member business lending cap limits how far credit unions can go in backing veteran business formation. During a shutdown and in the slow return to regular operations, disruptions in federal pay and services send those same members back to their credit union for help stabilizing their finances. For DakCU, S. 110 and more stable federal funding decisions remain linked issues that will shape how fully credit unions can meet the needs of servicemembers, veterans, public employees, and their families in the Dakotas.

The Roger Heacock Scholarship: A Gateway to the GAC Experience
DakCU is offering the Roger Heacock Scholarship again, giving two lucky Dakotans the chance to attend the Governmental Affairs Conference (GAC) in Washington, D.C., the largest annual credit union event of the year, held March 1-5. Hosted by America's Credit Unions, the GAC gathers thousands of industry leaders, advocates, and policymakers to discuss and influence the future of credit unions. This is a rare chance to represent the Dakotas on a national stage and shape the future of financial services while participating in one of the most impactful gatherings in the credit union movement. Get more information and apply here. 
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