Your Leadership Link

​Federal activity continues during recess, with key issues reinforcing the need for awareness and unified advocacy.

From the Dakota Credit Union Association (DakCU) and America's Credit Unions 

Your Dakota Credit Union Association continues working alongside America’s Credit Unions and the American Association of Credit Union Leagues to focus on the issues that matter most to credit unions and the members they serve. As federal activity remains active, several key conversations and proposals are shaping the future of the industry and directly impacting Dakota credit unions and their communities.
 
As Congress enters a scheduled two-week recess, activity in Washington continues to carry important implications. While lawmakers are in their home districts, several issues remain in motion, requiring awareness and readiness from credit union leaders.
 
Shutdown Response Reinforces the Credit Union Difference
Ongoing negotiations related to Department of Homeland Security funding may still bring Congress back to Washington. In the meantime, credit unions across the country continue to support members impacted by the partial government shutdown, often stepping in to absorb financial strain.

This response underscores the strength of the cooperative model and reinforces the industry’s core promise: to show up for members when it matters most.
 
Reconciliation Outlook: Preparation and Unified Advocacy
Discussions around a potential second reconciliation package are gaining traction, though no legislation has advanced at this stage. Both chambers must first pass a budget resolution before reconciliation efforts can proceed.

The key takeaway for credit unions is readiness. Should policy developments pose a risk to the industry, particularly regarding tax status, a coordinated and unified advocacy approach will be critical. At this time, no grassroots campaign has been activated, but ongoing engagement with leagues, stakeholders, and policymakers continues. For additional insight and context, explore Kenley’s full article.
 
Community Development Financial Institution (CDFI) Program Changes: Clarity and Access at Stake
Proposed changes to the System for Award Management certification process have raised concerns within the industry. Specifically, vague language around “discriminatory practices” and Diversity, Equity, Inclusion, and Accessibility (DEIA) requirements could introduce legal uncertainty and discourage participation in CDFI and Community Development Revolving Loan Fund programs. Given the importance of these programs in supporting underserved communities, ensuring clarity and accessibility remains a priority.
 
Data Privacy: Balancing Protection and Operational Impact
Draft federal data privacy legislation continues to evolve, with credit unions advocating for a national framework that reduces compliance complexity, particularly through preemption of state-level laws.

At the same time, leaders should be aware of potential operational impacts tied to provisions on data minimization, consumer rights, and litigation exposure. Ongoing advocacy is focused on maintaining flexibility for fraud prevention while minimizing regulatory burden.
 
NCUA Developments: Progress on Chartering and Regulatory Relief
The National Credit Union Administration (NCUA) has introduced a streamlined Phase 1 process for new credit union charter applications, aimed at improving efficiency early in the process. This is a positive step toward supporting growth and innovation within the industry.

In addition, feedback has been submitted on the agency’s latest round of deregulation proposals, with continued engagement expected. The NCUA is also anticipated to hold a board meeting next week, which may provide further insight into upcoming regulatory priorities.
 
Strategic Takeaway
While Congress is out of session, this is not a pause in activity. Credit union leaders should remain informed, engaged, and prepared to act as federal developments unfold. A proactive and unified approach will continue to be essential in protecting and advancing the credit union mission.
 
Your Association will continue to closely monitor these developments and advocate on behalf of our member credit unions at every step. Our team remains engaged with federal and state policymakers, national system partners, and regulatory agencies to ensure the priorities of Dakota credit unions are clearly represented. We will keep you informed as legislative and regulatory actions evolve and provide timely updates to support your strategic decision-making.
 
Staying Engaged
For questions please contact DakCU Interim President/CEO, George McDonald; DakCU Director of Legislative & Regulatory Affairs, John Alexander; or Director of Political Strategy and Engagement, Kenley Lamberty.