Off the Record, On the Issues with John

DakCU Compliance Conclave registration ends soon and ​the latest on the federal government shutdown and what it means for credit unions.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs
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DakCU Compliance Conclave
Time is running out. Don’t miss the all-new DakCU (Dakota Credit Union Association) Compliance Conclave, October 20–21, 2025, in Bismarck. This exclusive event is built for compliance professionals and credit union leaders tackling the day-to-day regulatory challenges. Gain actionable insights on:

• Emerging risks and fraud trends
• Payments innovation
• Practical strategies to strengthen policies and protect members

 
Registration closes October 10—secure your spot before it’s too late! Register today.
 
And while you’re in town, make plans to stay for the first-ever North Dakota DFI Credit Union Summit, October 22. Hosted by the North Dakota Department of Financial Institutions and NASCUS, this gathering will bring regulators, executives, and industry leaders together for meaningful discussions on the future of North Dakota’s credit union system.

Government Shutdown: DakCU Situation Report — October 1, 2025
At 12:01 a.m. CT Wednesday, October 1, the federal government shut down after Congress failed to enact a funding extension. The Senate last night rejected both the House‑passed continuing resolution and a Democratic alternative; without an enacted stopgap, appropriations lapsed and agencies began executing contingency plans.
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What’s moving on Capitol Hill

• Senate: Both short‑term funding measures failed to advance. Leaders traded blame; no path to immediate passage has been announced.
• House: The chamber’s stopgap passed earlier now lacks Senate support. Floor timing for any revised package is uncertain.
• Bottom line: No enacted continuing resolution; shutdown in effect until Congress clears a bill the President signs.

What’s operating — and what’s not

• Credit union system: NCUA (National Credit Union Administration) remains open; share insurance coverage up to at least $250,000 continues uninterrupted. Supervision, Call Report systems, and CLF (Central Liquidity Facility) operations remain available.
• Bank regulators: Federal Reserve and FDIC (Federal Deposit Insurance Corporation) continue normal operations due to independent funding.
• Markets oversight: SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) have furloughed most staff; registration reviews, many examinations, and most rulemaking pause except for emergency functions.
• Consumer protection: CFPB (Consumer Financial Protection Bureau) remains operational (independent funding).
• Economic data: BLS (Bureau of Labor Statistics), BEA (Bureau of Economic Analysis), and Census (U.S. Census Bureau) suspend most data releases; key labor, inflation, and spending series will be delayed.
• National parks: Most open‑air areas may remain accessible with limited services; visitor centers and many facilities are closed or minimally staffed.

Direct impacts for North Dakota & South Dakota members

• Federal pay & contracting: Civilian employees and many contractors face furloughs or delayed pay. Expect higher call volume for skip‑a‑pay, short‑term liquidity, and fee relief.
• Ag lending: USDA (U.S. Department of Agriculture) will furlough a large share of staff; new FSA (Farm Service Agency) direct and guaranteed loan processing is expected to pause; USDA market and crop reports are delayed.
• SBA lending: New 7(a) and 504 approvals pause; lenders may prepare files but cannot receive approvals until SBA (Small Business Administration) reopens.
• Flood insurance: If the NFIP (National Flood Insurance Program) lapses, lenders may continue to make loans in Special Flood Hazard Areas without federal flood insurance during the lapse, provided flood determinations, borrower notices, and other requirements are met; evaluate safety and soundness and consider private coverage options.
• Secondary effects: Verifications reliant on federal systems (tax transcripts, E‑Verify, some housing programs) may slow closings and modifications.

DakCU posture and requests

• Data capture: Report your shutdown‑support programs (skip‑a‑pay, 0% bridge loans, payroll deposit advances, fee waivers, hardship extensions). Use DakCU’s survey so we can quantify impact and brief our delegation.
• Congressional engagement: Core message fund the government to reduce uncertainty; credit unions stand ready to assist affected members while maintaining safety and soundness.
• Operational reminders: Document member‑assistance criteria, apply uniformly, monitor portfolio risk, and communicate proactively with members on payroll timing and relief options.

What to watch next

• Any Senate/House movement toward a clean CR (Continuing Resolution) or a negotiated package.
• Regulator updates (NCUA, interagency guidance) tied to NFIP and other program lapses.
• Duration‑sensitive pressures: delayed federal pay cycles, USDA data and loan bottlenecks, and market oversight constraints at SEC/CFTC.

Stay Connected
For more information or to share your perspectives, feel free to contact me.