Credit union advocacy paramount to navigating the next crisis

All the financial uncertainty and volatility of the past several months has presented a tremendous opportunity for the credit union voice. Our message to members, communities, and policymakers is one of service and security when it comes to the stressors of the financial landscape we are experiencing.

Because of their unique structure as not-for-profit financial institutions, credit unions have risen to the occasion, serving members through multiple crises in recent history. From the mortgage collapse of 2008 to the covid-19 pandemic to recent bank failures, and the volatile political budgeting environment, credit unions have stepped up. The message hasn’t changed, credit unions are well-positioned to help members navigate whatever challenges that come along.

As GoWest Credit Union Association works across our six-state region, we have extensive dialogue with our member credit unions, to help inform our positions for policy discussions, both on the Hill and with regulatory bodies, so we can continue the critical work of proactive advocacy on our members’ behalf. This also includes analysis and communication to help both our members and legislators understand the impacts and potential impacts of budgets and regulations.

Credit unions in the GoWest region have done a remarkable job of stepping in to fill the needs of their members when there are gaps created by crises. As we saw during the pandemic, credit unions were flexible and nimble, quickly offering a variety of options and services that were invaluable in assisting members. From skipped payments to short-term, low-interest loans, to access to cash, and more, credit unions were responsive and communicated to members quickly, easing stress in a crucial moment.

Credit unions will draw on that experience to help their members through whatever lies ahead. Because of their structure and ability to make decisions locally, members will have access to resources, and support they need along the way.

As the Association, our job is to ensure that the operating environment for our credit unions is as beneficial as possible, so they can provide that relief and support. To that end, GoWest stayed close to the debt ceiling developments in the Beltway and communicated potential impacts to our member credit unions throughout the process.

The passage of the Fiscal Responsibility Act (H.R. 3746), will raise the debt ceiling, set federal spending for at least the next two fiscal years, as well as make additional policy determinations.

The final structure of the agreement establishes a near two-year debt ceiling increase, pushing future debt ceiling debates past the 2024 Presidential Election, estimated to be reached on or around January 2, 2025. It includes a freeze on non-defense, discretionary spending levels in the upcoming 2024 fiscal year that starts in October, which would keep non-defense funding levels flat for FY2024, allowing a 1% increase in FY 2025 funding levels, which will likely lead to the budgetary fights shifting to individual appropriation bills.

As the strategic advocacy partner for our member credit unions, the GoWest Credit Union Association helps navigate legislation, proposed spending cuts, regulatory decisions, and all ripple effects that may occur as a result. It’s the critical component of the value of the league system to credit unions and we are proud to take that responsibility seriously.