Sioux Falls, SD (July 29, 2025) |
In the often-unpredictable world of finance, even the most well-run institutions need a safety net. For America’s credit unions, including those serving small towns across North Dakota, that safety net is the Central Liquidity Facility (CLF).
The CLF is the credit union system’s emergency backstop, providing reliable access to funding during periods of economic disruption, unexpected cash needs, or market instability. But right now, that safety net has a gaping hole—and it’s putting small, rural credit unions and their members at risk.
Thankfully, there’s a solution. Congress has a chance to fix this problem by passing the National Credit Union Association (NCUA) Central Liquidity Facility Enhancements Act—bipartisan legislation that would restore key provisions once authorized during the COVID-19 pandemic. This bill is a practical, no-cost way to strengthen the financial stability of credit unions, especially those that serve rural and underserved communities.
Why does this matter to North Dakota? Because the vast majority of our credit unions, more than 80%, have less than $250 million in assets. These institutions are pillars of their communities in places like LaMoure, Kulm, Maddock, and Edgeley. But unlike large banks, most small credit unions don’t have direct access to the Federal Reserve’s discount window or other sophisticated liquidity mechanisms. That’s why the CLF is so vital.
During the pandemic, temporary reforms to the CLF allowed corporate credit unions to act as “agent members,” pooling resources to extend liquidity access to thousands of smaller credit unions. This cooperative approach worked. The number of credit unions backed by the CLF skyrocketed from under 300 to over 4,100, ensuring members could continue to access their funds, take out loans, and weather the economic storm.
But those provisions expired at the end of 2022. Now, over 3,300 credit unions, many of them small, rural, and member-focused, have been left without access to the federal liquidity safety net. That includes the majority of credit unions in our state.
The CLF Enhancements Act would change that. It would reinstate the agent membership model, make important technical corrections, and allow the CLF to once again serve the full breadth of America’s credit unions. Importantly, the CLF is self-funded—there’s no cost to taxpayers. Participation is financed entirely by credit unions through the purchase of capital stock.
In a time when the financial headlines are often dominated by megabanks and fintech startups, this legislation reminds us of something simple and profound: community-based financial institutions matter. They put people before profits. They serve members, not shareholders. And they need smart, pragmatic policy tools to continue doing so.
That’s why we are calling on North Dakota’s congressional delegation to support the CLF Enhancements Act. Doing so will strengthen our local financial system, help protect working families, and demonstrate Congress’s ongoing commitment to cooperative finance.
We’re grateful to Senator Kevin Cramer for his continued leadership on issues that matter to rural North Dakotans. Supporting this bipartisan legislation would be a meaningful step toward reinforcing financial stability and safeguarding access to essential services for thousands of credit union members across our state.
