Leaning into the credit union mission while advocating for a resilient future

It’s no secret the last few weeks have brought a bit of a whirlwind within Washington and understanding what we can expect within the regulatory landscape. While several big topics remain on the table, credit unions can take this time to fully lean into their missions in offering communities stability and resilience. Industry advocates, like DCUC, will continue to stress the need for policies that protect and support the unique structure and enduring purpose of credit unions; especially during pending budget reconciliation discussions and decisions surrounding federal regulation agencies.

During this time, your credit union’s commitment to its core mission becomes even more critical. Credit unions must focus on their purpose of serving members' financial needs while fostering financial wellness and security. By emphasizing member service and continuing your level of dedication to community investment, credit unions can provide stability and reassurance when members need it most.

Our industry understands the important role the National Credit Union Administration (NCUA), the independent regulator fit to oversee our cooperative-focused, people-first mission and almost century-long movement. A strong, independent NCUA is essential to preserving and effectively regulating the credit union model within America’s financial ecosystem. Without this, credit unions risk being regulated in ways that do not align with their unique purpose, potentially undermining their ability to serve their members effectively.

The elephant in the room . . . many are wondering what the future holds for the CFPB. Credit unions also face an evolving regulatory landscape, particularly with the Consumer Financial Protection Bureau (CFPB). While consumer protection is a shared priority, credit unions differ from for-profit financial institutions in both mission and function. Regulations designed for large banks can unintentionally create burdens that disproportionately impact credit unions, limiting their capacity to provide personalized financial services. Ensuring that regulatory measures reflect the cooperative nature of credit unions will allow them to continue supporting their members' financial well-being while maintaining necessary consumer protections.

One of the key elements ensuring credit unions' ability to offer competitive rates and community-focused services is their tax-exempt status. This exemption recognizes the not-for-profit, member-owned nature of credit unions and acknowledges the critical financial services they provide, particularly to underserved, rural, or smaller populations and communities. However, this status has faced continued scrutiny and legislative threats. It is essential to advocate for policies that preserve this exemption, reinforcing the role of credit unions in fostering financial inclusion and economic resilience. If credit unions were to lose this tax advantage, their ability to offer low-cost services and community investments would be significantly diminished.

Credit unions play an indispensable role in strengthening communities, particularly in rural, small, and underserved areas. Unlike traditional banks that may close branches in low-profit regions, credit unions remain committed to serving these areas, providing essential financial services that stimulate and strengthen local economies. Access to fair loans, savings programs, financial education, and tailored services empowers members, such as low-income families, military and veteran populations, and small businesses, leading to long-term economic growth, financial readiness, and resilience. When credit unions thrive, so do the communities they serve, reinforcing the broader economic framework and reducing disparities in financial access.

Defending the independence of the NCUA, protecting the credit union tax status, and advocating for fair regulatory treatment are all essential to ensuring credit unions remain strong for their members. However, credit unions are more than just financial institutions—they are pillars of economic resilience, committed to fostering financial well-being and peace of mind for their members and local communities. By staying true to our movement’s mission while championing policies that recognize and support the vital role credit unions play in America, we can amplify the collective voice of the credit union difference.