The President's Perspective

A new executive order increases oversight of federal agencies, including the NCUA; Chesney Garnos earns a spot on Sioux Falls’ 30 Under 30; and more.

Greetings and Happy Tuesday!

Last week, the White House issued a significant executive order aimed at enhancing presidential oversight across all federal agencies, including independent entities like the National Credit Union Administration (NCUA) and the Consumer Financial Protection Bureau (CFPB).

This order mandates that all federal agencies, without exception, must:

• Submit all proposed and final regulatory actions to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President before publication in the Federal Register.
• Appoint a liaison to the White House to ensure direct communication between the administration and independent agencies.

Furthermore, the order establishes that:

• The president, through the attorney general, holds ultimate authority on the legal interpretation of statutes that federal agencies follow.
• The Office of Management and Budget (OMB) will review independent regulatory agencies' obligations, policies, and priorities to ensure alignment with the administration's agenda.
• The OMB director will consult with leadership of independent regulatory agencies and may adjust their budgets and regulatory focus as deemed necessary.

Implications for Credit Unions
This executive order presents both opportunities and challenges for our credit union community:

• Transparency and Accountability: Historically, annual NCUA budget increases have often led to additional regulations and examination requirements, adding to our operational burdens and compliance costs. While the NCUA does hold a budget briefing, credit union input is rarely considered. This order could lead to more transparency and accountability in the agency's budget process, potentially allowing for more formal industry input.
• Budget Oversight: The NCUA Board currently has significant discretion in setting the budget without sufficient Congressional or industry oversight. Enhanced oversight could curb continued budget growth and future assessments. Each year, our credit unions express concerns that the NCUA's budget continues to grow beyond necessity, leading to higher operating fees and assessments, which ultimately impact our members.
• Operational Efficiency: We should welcome any effort that promotes better efficiency and cost controls. As an industry, we need to advocate for greater efficiency in regulatory oversight and question whether the NCUA is effectively managing costs in areas such as staffing, travel, and technology.
• Political Influence: Some may argue that this action could politicize the agency, aligning its policies and regulatory actions more closely with the administration's agenda. However, it's worth noting that politicization already exits, always has, albeit in the reverse order. This is often the case with political appointees at any level of government. For instance, the NCUA's 2022-2026 strategic plan included several initiatives driven by the current administration, with many components resembling those of the CFPB.

Ultimately, while this executive order may face legal challenges concerning its constitutionality, as it alters the established autonomy of independent agencies, the concept of enhanced oversight, accountability, and stakeholder input is commendable.

Chesney Garnos Named to Sioux Falls’ 30 Under 30 List
All across the Dakotas, our communities continue to thrive, thanks to a new generation of talented young professionals making their mark in business and community leadership. Among this year’s distinguished honorees in Sioux Fall's third annual 30 Under 30 is our very own Chesney Garnos, Executive Director of Government Affairs. Chesney is recognized for her early career achievements here at the association and for her leadership potential, and commitment to her community engagement.

From what I learned, the selection process was highly competitive. Chesney’s well-earned recognition places her among the region’s most promising rising leaders. Her dedication to the credit union movement and her commitment to excelling professionally and her passion for making a difference beyond the workplace truly set her apart.

Congratulations, Chesney, on this well-deserved honor!   We are so proud of you! 
Read more here.
 
Summit Registration is Open!
I'm excited to announce that registration is now open for the 2025 Summit, taking place from May 12–14 at the Delta Hotel and Convention Center in Fargo. This year, we're returning with a revised three-day format that promises even more value and flexibility. You won't want to miss our incredible lineup of speakers, covering topics from credit union economics and board training to marketing and leadership development. We'll also offer a Crasher opportunity for those aged 35 and under, a golf outing, our popular awards banquet, and, of course, our annual business meeting. Take advantage of the early bird discount, which saves you $50 per person and is available through April 18. Find all the details, lodging information, and registration here.

Who is Your Summit Crasher?
We've just opened applications for our Summit Crasher program, and I encourage our credit union affiliates to nominate one (or more) of your emerging leaders to apply. The Crasher program can have a profound impact on their careers and professional development. What better way to build and sustain our movement than by providing this mentoring platform? Crashers receive FREE registration, so the only expenses are travel and lodging. Special thanks to Millennium Corporate for their generous support; their commitment to this leadership development program is vital to sustaining our credit union movement. Contact George McDonald if you have any questions about the Crasher agenda.

Reaffiliation Reminder & DakCU Board Seats Opening
A friendly reminder: March 5 is the deadline to submit your association dues to secure voting privileges at our 2025 Annual Meeting. We have three DakCU board seats opening this year: SD Division A (open seat as Jarrod Reisner will be termed out); ND Division B (Lacey Fetsch); and SD Division C (Katie Bredvik). A nominating committee has been formed; feel free to contact Jarrod Reisner (Black Hills Federal CU), Jim Schaefbauer (United Savings Credit Union), or April Tompkins (Explorers CU) with nominations or any questions about the process.

On a Positive Note
Congratulations to Crystal Mercer, Member Experience & Digital Services Manager, and Chad Cota, VP Business Lending, for being selected as Town and Country Credit Union's 2024 Rookies of the Year. Both have made significant impacts within their first two years. Chad excels as a commercial lender and mentor, while Crystal enhances member experiences and leads community initiatives. We're grateful for their contributions and excited to see their continued success at Town & Country!

Have a great week,

​DakCU President/CEO