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CDFI Fund RIF rescinded; work continues on key credit union protections.

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

Major Win: CDFI Fund RIF Rescinded
With government functions restored, the Trump Administration has rescinded its reduction-in-force (RIF) plans targeting the Community Development Financial Institution (CDFI) Fund a significant victory for credit union advocacy and unified efforts across our system.
 
Your Dakota Credit Union Association (DakCU) together with America’s Credit Unions and Inclusiv worked tirelessly with Congress, Treasury, and the administration during the shutdown to underscore the CDFI Fund’s impact: every dollar granted to a credit union through the program generates $12 in private investment. These efforts led to 103 Republican members of Congress reaffirming the fund’s value in a letter to the administration.
 
America’s Credit Unions also published an op-ed in The Hill highlighting how CDFIs maximize federal grant dollars and featured success stories in recent blog posts. Your work is essential in communities nationwide and Washington is taking notice.

Next Steps: DakCU along with America’s Credit Unions will continue engaging lawmakers and the Administration to ensure the CDFI Fund remains a vital resource for communities and individuals across the country.
 
Credit Union Advocacy Update: Form 990 and Key Legislative Activity
Your DakCU Advocacy Team will continue to monitor several important federal policy developments affecting the cooperative financial services sector. Here’s an overview of where things stand and what comes next.
 
Bankers Circulate Form 990 Sign-On Letter
Banking trade associations are urging House lawmakers to ask the Treasury to reconsider the exemption that lets credit unions skip filing Form 990. Early outreach by your association and America’s Credit Unions has kept interest limited, with few members of Congress signing on.

While no broader grassroots effort is planned, leagues should continue engaging their delegations. Credit unions already submit detailed NCUA reports, and many Form 990 fields are duplicative. A new IRS filing requirement would add cost and compliance burden, diverting resources from the 144 million Americans who rely on credit unions for safe, affordable financial services.
 
Legislative Activity: Deposit Insurance and Regulatory Rollback
With the federal government reopened, Congress is moving forward on several issues affecting credit unions.

The House Financial Services Committee will examine the future of deposit insurance, including potential adjustments to coverage levels and emergency transaction account guarantees. While credit unions have not advocated for changes to National Credit Union Share Insurance Fund (NCUSIF) coverage, they emphasize that any adjustments for banks should apply equally to credit union members without altering the NCUSIF's proven structure or funding.

Meanwhile, the Senate Small Business Committee will review regulatory rollback efforts. DakCU and America’s Credit Unions support targeted relief to reduce unnecessary burdens, while cautioning that rapid deregulation could risk consumer confidence and financial stability.
 
Staying Engaged
DakCU and America’s Credit Unions will continue to follow these developments closely and work alongside our league partners should further action be required. Our cooperative advocacy efforts remain centered on protecting the credit union mission and ensuring we can continue delivering meaningful service to members and communities across the country.
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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.