Your Leadership Link

​Advocacy efforts remain focused on protecting credit unions’ tax status and advancing key legislative priorities.

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.
 
Reconciliation & Tax Status
The House is expected to take up the Senate-passed budget resolution this week. Thanks to a focused advocacy approach, the Senate version remained narrowly focused with no tax-related provisions included. Ahead of last week’s Senate vote-a-rama, America’s Credit Unions urged lawmakers to keep the credit union tax status out of any amendments. A similar letter will be sent to the House this week. There is no active grassroots campaign currently, but America’s Credit Unions, Leagues, and partners remain engaged with lawmakers to protect credit unions’ tax status and keep the bill narrowly focused.
  
Illinois Interchange Fee Prohibition Act (IFPA)
The Office of the Comptroller of the Currency (OCC) recently affirmed federal preemption over the Illinois Interchange Fee Prohibition Act (IFPA) for national banks. While this does not yet extend to credit unions, it may support ongoing litigation before the U.S. Court of Appeals. The IFPA would prohibit interchange collection on tax and gratuity portions of transactions in Illinois, impacting credit unions with members conducting transactions in the state. Advocacy efforts continue to push for similar protections for credit unions.
 
As America’s Credit Unions President/CEO Scott Simpson noted, “We appreciate the OCC formally clarifying federal preemption to protect financial institutions and consumers from the harmful effects of this misguided Illinois law. With the clarity that states cannot interfere with national bank powers, Americans are also protected from other efforts that would undermine the safety and stability of the payments system. Based on the Federal Credit Union Act and credit unions' status as federal instrumentalities, federal credit unions should also be preempted from the IFPA and any other state law that encroaches against these national authorities. We are confident the NCUA will continue its leadership to provide similar clarification for credit unions and their millions of members.”
 
Congressional Activity

• Data Privacy: America’s Credit Unions supports the GUARD Financial Data Act and SECURE Data Act to establish a national privacy standard.
• Appropriations: The House advanced its FY2027 bill, including language blocking a central bank digital currency and proposing reduced Community Development Financial Institutions (CDFI) funding. Advocacy continues to support strong CDFI funding levels.
• Regulatory Relief: The Small LENDER Act would exempt smaller institutions from certain data collection requirements.
• Federal Reserve: The Senate is expected to vote this week on advancing the nomination of Kevin Warsh for Chairman.

 
CDFI Oversight
Following Treasury’s announcement of increased CDFI reviews, America’s Credit Unions and Inclusiv emphasized that credit unions remain strong, compliant stewards of the program. Advocacy continues to ensure oversight targets bad actors without adding unnecessary burden.
 
A joint statement by America’s Credit Unions President/CEO Scott Simpson and Inclusiv President/CEO Cathie Mahon reinforced the impact of credit unions through the CDFI program: “Credit unions have proven themselves to be trustworthy partners for people and communities through the CDFI Fund. As the largest depository institution type of CDFIs, the commitment and impact credit unions have through this program are undeniable. Hundreds of billions of dollars have been invested by CDFI credit unions to support mortgage lending, consumer financing, and small business capital within their local communities. While we recognize the need for transparency and efficient oversight to protect taxpayers, highly regulated credit unions are not the problem and we urge officials to focus on solutions that target unregulated bad actors without compromising trusted stewards.”
 
Regulatory Updates

• National Credit Union Administration (NCUA): Issued its tenth round of deregulation proposals and is seeking input on streamlining data collection.
• Financial Crimes Enforcement Network (FinCEN): Continued advocacy to update Currency Transactions Report (CTR) and Suspicious Activity Report (SAR) thresholds.
• Consumer Financial Protection Bureau (CFPB): Finalized updates to Equal Credit Opportunity Act (ECOA).
• Fidelity Bonds: Ongoing efforts to reduce related regulatory burdens.

 
Elder Exploitation Prevention Toolkit
In advance of June’s Elder Abuse Awareness Month, the League System has released a new Elder Exploitation Prevention Toolkit available for credit unions to customize and use within their communities.
 
This complimentary resource is designed to help credit unions educate members, equip staff, and raise awareness around the growing risk of elder financial exploitation. Materials can be tailored to fit each credit union’s voice and outreach strategy, making it easy to share timely, relevant information across multiple channels. The toolkit reflects the collaborative strength of the League System and provides another practical way for credit unions to reinforce their role as trusted financial partners and protect some of their most vulnerable members. With June 15 recognized as World Elder Abuse Awareness Day, the toolkit also offers a timely opportunity for credit unions to align outreach efforts with a global initiative focused on preventing elder abuse and supporting older adults.
 
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; or Director of Political Strategy and Engagement, Kenley Lamberty.