The President’s Perspective

​Amendment to NDAA receives scrutiny by credit unions; June means it’s time for annual 30 x 30 campaign; and be sure to sign up for your state’s GAC PAC golf outing!

Greetings all! Each election cycle is important, and the 2024 general election is shaping up to be one for the history books. We know most policy makers don’t understand the unique structure and mission of credit unions; therefore, educating lawmakers and community leaders on the credit union difference is key. One way to ensure we have a seat at the table is by supporting credit union friendly candidates and policymakers through our DakCU PAC (Political Action Committee). After all, decisions are going to be made in Bismarck, Pierre, and Washington D.C.

​So, the question is, do we want someone else to make decisions for us? Of course not. That’s why we need you to support our DakCU PAC efforts. When it comes to credit union advocacy we need to define the conversation and debate on our terms.

With all that in mind, I hope you will continue to support our Political Action Committees in both states by joining one of our upcoming golf outings. First up – the North Dakota GAC is holding their “PAC Golf Scramble” on Thursday, June 20, at Memorial Park Country Club in Lamoure, ND. Registration opens at 9:30 a.m. CT with a shotgun start at 10:00 a.m. Find additional information and register here; contact John Alexander with any questions.

Then, the South Dakota GAC is planning a “Par for the PAC” event on Thursday, July 18, at Lead Country Club beginning at noon, MT. Additional information and registration is available here; contact Chesney Garnos with questions about this event. I hope to see many of you on the course at either (or both) of these advocacy events!

Amendment to NDAA isn’t necessary.
As you may be aware, there was an amendment introduced to the National Defense Authorization Act (NDAA) last Friday afternoon. This amendment was offered specifically in reference to the Department of Defense’s (DoD) Overseas Military Banking Program (OMBP) contract that was awarded to Navy Federal Credit Union. You may have received an action alert on this issue requesting your assistance in asking our congressional delegation to oppose this amendment.
 
Navy FCU is the first ever credit union to receive this designation. In fact, this contract has been operated by Bank of America since WWII. The amendment offered last week is to clarify that deposits made by military members under the program are federally insured by the National Credit Union Administration. The legislation only applies to the OMBP.
 
As a movement, we support federal insurance for all credit union deposits made within a government contract where a credit union is acting as a fiscal agent, not just the OMBP. The amendment, as introduced, leaves open the question about future situations where a credit union may need insurance to act as a fiscal agent for the federal government. However, the ability for credit unions to act as a fiscal agent is already in the FCU Act and Congress has addressed insurance issues surrounding credit unions acting as fiscal agents dealing with nonmembers before, such as when it acted in 2014 to ensure IOLTA accounts were covered. Given this legislative history, we do not believe Congress acting on this matter threatens the credit union tax status. As for the amendment itself, credit unions believe that a piecemeal approach to this problem is not the right solution and we do not support it as proposed.
 
America’s Credit Unions suggests a more appropriate solution will future proof the FCUA for all situations where a credit may provide transaction account services as a fiscal agent in a government contract. Therefore, America’s Credit Unions shared draft language for an amendment to the FY2025 NDAA that may be a  more suitable approach by ensuring the availability of federal insurance for all credit union fiscal agent relationships, both now and in the future.
 
America’s Credit Unions also recognizes that there are some credit unions that would like further changes and clarity how the DoD handles broader military banking and financial institution issues. We would be open to including a further study or a properly constructed DoD commission to examine these matters and provide DoD advice related to them. Check out the America’s Credit Unions’ letter to the three members of Congress who introduced the amendment over the weekend to ensure they understood why we believe a different approach is needed.

June means 30 x 30 grassroots efforts!
Here we are in June – which means our national PAC is once again launching their “30x30” fundraising campaign. This is a grassroots effort where we ask credit union advocates to contribute $30 by the end of the month. America’s Credit Unions PAC is a critical advocacy tool for our continued work on Capitol Hill and essential in protecting a successful credit union environment in our communities. I am hoping to make a strong showing here in the Dakotas. Will you join me and help us reach our states’ goals? Click here to donate now, and feel free to contact me with any questions. 

Exclusive Town Hall meeting with new Trustage CEO, Terrance Williams
Dakota credit union CEOs and leaders are invited to an exclusive Town Hall with TruStage President/CEO Terrance Williams. We are very excited that Terrance has carved out this time to hear from our Dakota credit unions. The virtual Town Hall is scheduled for Tuesday, June 11, at 2:00 p.m. (CT). Credit union leaders from Montana and Minnesota will also be joining us for this special opportunity. Terrance will discuss his vision for the company, the importance of evolving to meet members’ needs, expanding credit unions’ access to innovation and technology, and the opportunities and challenges that lie ahead. There will be plenty of time for attendees to ask questions. Please contact me if you need the meeting link.

CU Professionals Forum & Foundation Golf Scramble should be on your radar.
Once again, DakCU is planning our popular CU Professionals Forum, which will be paired with our Foundation Golf Scramble. Registration will be available soon, but meanwhile, please save the dates, August 12 – 13. Both events will be held in Fargo, and 100% of proceeds from the golf outing will be donated to Sanford Children’s Hospital in Fargo for the CU4Kids Micropreemie Care Unit.

New employee orientation PowerPoint available now for credit unions and chapters!
I’m so excited to share our latest effort to help onboard your new and recent staff members as quickly as possible with advocacy and the many resources your professional trade association and America’s Credit unions provides. The DakCU team has prepared a “New Credit Union Employee Orientation” PowerPoint presentation. Please take a minute to review and consider sharing it at upcoming staff meetings, new employee orientations, and chapter events. This resource will help familiarize your staff with our association’s purpose, role in the three-tiered system, and our own staff members. To view and/or download the PowerPoint presentation, visit “About Us” on our website and then scroll down to “New Employee Orientation PPT” button. Enjoy, and please use it!
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Have a great week, 

DakCU President/CEO