Off the Record, On the Issues with John

​Credit unions are under fire—join DakCU in defending our tax-exempt status and empowering advocates at our August 12 Advocacy Workshop in Fargo.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Credit Unions Under Fire: DakCU in Conjunction with Americas Credit Unions Push Back
In an aggressive new push, state banking associations have petitioned the U.S. Treasury to reevaluate the tax-exempt status of credit unions claiming, with little irony, that our cooperatives have grown too successful to remain exempt from federal income tax. In response, the Dakota Credit Union Association (DakCU) has proudly signed on to a national letter pushing back against these misleading claims, defending the credit union mission and demanding a more honest conversation.

The bankers' letter to Treasury Assistant Secretary Graham Steele paints a sensational picture: credit unions buying stadium naming rights, expanding across the country, and acquiring banks. But what they fail to acknowledge is this, credit unions have become strong not by abandoning their mission, but by fulfilling it. They're growing because members trust them. They're expanding because communities are underserved. They're acquiring banks because traditional banks are stepping back from small towns and small businesses altogether.

That’s the part bankers won’t tell. Across South/North Dakota and the nation, it’s credit unions, not banks that are answering the call when small businesses seek loans. Community banks are consolidating or closing shops, especially in rural areas. Meanwhile, credit unions continue to provide vital access to capital for local entrepreneurs, veterans, farmers, and family-run businesses. We know this first-hand, our members tell us the big banks won’t return their calls, let alone fund their projects. That’s where credit unions step in, often making the loans that keep the local café open or help a young farmer buy her first piece of equipment.

To suggest that these cooperatives should be taxed like profit-driven banks, banks that answer to shareholders, not communities, is to fundamentally misunderstand the credit union model. Credit unions are not-for-profit financial institutions owned by their members, and every dollar earned is reinvested into better rates, lower fees, and more services. That’s not a loophole, it’s a mission!

DakCU thanks our national partners America’s Credit Unions for spearheading this response and standing firm in the face of misguided criticism. We remain resolute in our commitment to advocacy, transparency, and ensuring credit unions can continue to serve the people, families, and businesses that the banks have long since left behind.
 
A No-Cost Fix with High Impact: Senator Cramer Champions Credit Union Liquidity Access
The NCUA Central Liquidity Facility Enhancements Act is a no-cost, high-impact piece of bipartisan legislation that would restore a critical financial backstop for small and mid-sized credit unions across the country. Specifically, it would reinstate the “agent membership” model, which previously allowed corporate credit unions to purchase CLF capital stock on behalf of smaller institutions dramatically expanding emergency liquidity access during crises like the COVID-19 pandemic.

When this provision was in place, CLF participation surged from fewer than 300 to over 4,100 credit unions. However, those enhancements expired at the end of 2022, causing more than 3,300 credit unions with less than $250 million in assets to lose access to this vital support.

For North Dakota, where roughly 80% of credit unions fall below that threshold, the impact has been especially stark. Without this legislation, these institutions are effectively excluded from the system unless they can meet costly capital requirements alone. The CLF Enhancements Act offers a smart and fiscally responsible solution: it strengthens the financial stability of credit unions, particularly those in rural and underserved areas without adding to the federal deficit. We are deeply grateful to Senator Kevin Cramer for his thoughtful leadership and strong support for this essential reform.

The CLFE Act was introduced yesterday. Please read our letter for support here.

Registration Closes Tomorrow for All-New Advocacy 101 Workshop on August 12
DakCU is hosting a complimentary Advocacy 101 Workshop from 10:00 a.m. to 12:00 p.m. (CT) on Tuesday, August 12, at the Delta Hotel in Fargo prior to the free Professionals Forum event in the afternoon. This focused two-hour session is designed to equip your leaders, staff, and board members with the tools and confidence to become strong and effective advocates.

Featured keynote speaker Austin DeBey, Director of Advocacy for the American Association of Credit Union Leagues, will provide valuable insight and expertise.

​Follow the link for more information or to register. Registration closes tomorrow, August 1.
 
Credit Union Community to Rally September 18 for State PAC Relief Golf Outing
On September 18, the ND GAC: Lamoure Credit Union - PAC Scramble kicks off at Memorial Park Country Club in LaMoure, ND. Registration starts at 9:30 a.m. and a shotgun start at 10:00 a.m., bringing the credit union community together to generate vital funds for the State PAC and support our legislators in turbulent times; please note there is no room block, and attendees should bring cash—checks will not be accepted on the course—for on-course games and beverages, with awards to follow at approximately 3:30 p.m., and all payments, made by personal credit card or personal check, treated as non-tax-deductible donations to DakCUPAC (corporate contributions are prohibited by law and participation is entirely voluntary). Register here!
 
Building Leadership Resilience: A Step-by-Step Succession Planning Workshop
September 24, 2025 1:00 PM CT/12:00 PM MT
Leadership continuity is a vital component of credit union resilience. With the NCUA’s succession planning rule going into effect January 1, 2026, federally insured credit unions must adopt and maintain a formal succession plan covering key leadership positions. 
 
This focused webinar workshop will provide practical, step-by-step guidance on building a compliant plan, assessing leadership gaps, preparing for both emergency and planned transitions, and aligning succession with your credit union's long-term strategy. Join us for this session and leave with actionable tools to strengthen your governance and exam-readiness, because strong leadership keeps your mission moving forward — even through change. Register here. 
 
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For more information or to share your perspectives, feel free to contact me.  ​