Your Leadership Link

As Congress returns, DakCU continues advocating to protect credit unions’ tax status and access to affordable financial services.

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

Your Dakota Credit Union Association continues working in close coordination with America’s Credit Unions, league partners, and industry stakeholders to monitor federal activity and advocate on the issues that matter most to Dakota credit unions and the members they serve. As Congress returns to Washington, several key developments are shaping the policy landscape and requiring continued awareness and engagement.

Shutdown Response Reinforces the Credit Union Difference
Funding for the Department of Homeland Security remains a top priority for lawmakers as the House and Senate reconvene. The current shutdown has now become the longest in U.S. history, creating ongoing challenges for affected workers and communities.

Across the country, credit unions continue stepping up to support impacted members often absorbing financial strain to provide relief and stability. This response highlights more than goodwill; it demonstrates the strength of the cooperative model and reinforces the industry’s core promise: when people need support most, credit unions show up.

Reconciliation Outlook: Focused Strategy and Proactive Messaging
​Congressional leaders have reached an agreement signaling movement toward a more limited, “skinny” reconciliation package, primarily focused on immigration enforcement and border security funding.

America's Credit Unions President/CEO Scott Simpson emphasized that while budget reconciliation has always been a potential pathway for advancing significant policy changes, credit unions remain firm in their position that the industry’s tax status must not be used as a funding mechanism.

“We have always recognized that reconciliation could be used to move major policy priorities,” Simpson noted. “While funding priorities continue to shift, using credit unions’ tax status as a pay-for must be off the table. Doing so would place the burden on 145 million credit union members including teachers, first responders, farmers, and members of the military and risk limiting the economic freedom they rely on.”

Simpson added that America’s Credit Unions and the broader industry are prepared to actively engage as the process unfolds. “The reconciliation pathway remains uncertain, but credit unions stand ready to mobilize our advocacy efforts as details emerge,” he said. “Congress is already familiar with our position, and we will continue to advocate clearly and consistently to ensure consumers maintain access to safe, affordable financial services. We are committed to working with lawmakers to ensure any final outcome delivers meaningful economic benefits for communities across the country.”

Fiscal Year(FY)2027 Budget and Community Development Financial Institutions​ (CDFI) Fund: Advocacy Continues
Recent developments surrounding the CDFI Fund reflect both progress and ongoing concern. The Office of Management and Budget announced the release of $289 million in previously appropriated funding, while the United States Department of the Treasury outlined plans to implement new rules and restrictions on awards.

At the same time, the administration’s proposed FY2027 budget includes significant cuts to the CDFI Fund and introduces new fees impacting small business lending programs, both of which are opposed by the credit union industry.

Advocacy efforts remain focused on preserving the fund and ensuring it continues to support credit unions and the communities they serve. While no formal call to action is in place, engagement with policymakers is ongoing.

The proposed budget also includes increased investments in fraud detection and prevention, including expanded resources for financial intelligence and enforcement. These provisions are viewed as positive steps in strengthening the financial system and protecting consumers.

As federal discussions continue to evolve, your Dakota Credit Union Association remains committed to keeping members informed, prepared, and positioned to respond. Through ongoing coordination with national partners and proactive advocacy efforts, we will continue to represent the interests of Dakota credit unions and the members who rely on them every day.

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.