WASHINGTON–CUNA wrapped up its Governmental Affairs Conference here with insights into the “generational shift” taking place in politics, with another CU-backed bill being dropped in the Senate, and with advice to look at CUs around the world for the examples they are setting, before sending attendees off to Capitol Hill to meet with their representatives.
Many of those same CU reps will be also hiking the Hill today to meet with other congressional offices. Many members of Congress use GAC to introduce favored pieces of legislation while CUs are in town, and that was true this year, as well, as outlined below.
In all, CUNA reported more than 5,000 people were on hand for what is traditionally the largest event in the U.S. credit union community. CUToday.info has had extensive coverage of the event, including separate meetings held in conjunction with GAC.
In the closing keynote address to the meeting, Republican political strategist Karl Rove—credited with getting George W. Bush elected—and Democrat Jennifer Palmieri—who was White House deputy press secretary for President Clinton, White House communications director for President Obama, and head of communications for Hillary Clinton’s presidential campaign—joined CUNA Deputy Chief Advocacy Officer for Federal Affairs Jason Stverak for a Q&A.
Noting that should Donald Trump and Joe Biden face off again in the 2024 president election, Trump would be the youngest of the two at 78, and they likely mark the end of a generation, Rove said in comments reported by CUNA.
‘Anxious for a Shift’
“The country is anxious for a generational shift,” Rove stated. “We’re in a moment where the American people have had it. They’re going to want something better, and they’re going to get it.”
Even as Americans have become more cynical about politics, CUNA quoted Palmieri as saying, “The thing that makes me optimistic is the number of people voting. On one hand, I feel like people are ready for a change and, on the other hand, I feel like people are so exhausted by change there is some sort of comfort in letting the status quo continue.”
From left, Jason Stverak, Jennifer Palmiero and Karl Rove.
Biden Will Run
Palmieri told the GAC audience Biden will run again in 2024, and she believes there are talented, younger Democrats in line behind him.
“We have a deep, talented bench of people in their 40s and 50s,” Palmieri said. “Trump helped make Democratic candidates great because they were so freaked out and had to work really hard in terms of organization and being good candidates.”
Added Rove, “There’s an army of prospective Democratic presidential candidates. People want the next president, whoever it is, to be looking toward the future and not the past.”
CU Board Modernization Act Intro’d in Senate
Meanwhile, the Credit Union Board Modernization Act has been introduced in the Senate by Sens. Kyrsten Sinema (I-AZ), Bill Hagerty (R-TN), Alex Padilla (D-CA) and Thom Tillis (R-NC). The legislation, which has the backing of both credit union trade groups, would update the Federal Credit Union Act to allow federal credit union boards to meet six times per year instead of the current once per month.
As CUToday.info reported earlier, the House passed the bill in January via voice vote.
“We thank the Senators for their bipartisan work to give federal credit unions flexibility to free up board time and resources to better serve members,” said CUNA President/CEO Jim Nussle. “This common-sense bill has broad bipartisan support, as shown by the House’s quick action to advance the bill, and we encourage the Senate to move the bill forward quickly.”
Added NAFCU President and CEO Dan Berger, “We commend the introduction of the Credit Union Board Modernization Act in the Senate. We thank Senators Sinema, Hagerty, Padilla, and Tillis for their pro-credit union efforts to recognize the outdated, burdensome requirements placed on smaller, community-based financial institutions from outdated laws. This critical legislation will allow credit unions more flexibility and time to devote attention to serving their 135 million members while helping disadvantaged, underbanked communities who need access to affordable financial products and services. We urge the Senate to quickly pass this legislation.”
Other Bills Introduced
Also introduced in Congress while credit unions were at GAC were:
- Sens. Mazie Hirono (D-HI) and Dan Sullivan (R-AK) introduced legislation to exempt credit union loans made to veteran-owned businesses from the member business lending cap.
- Sens. Alex Padilla (D-CA) and Kevin Cramer R-ND) have introduced legislation that would allow credit unions to purchase central liquidity facility (CLF) capital stock for specific members for the next three years. CUNA, the California Credit Union League, and Dakota Credit Union Association said they coordinated with policymakers on the bill. The legislation would extend authorities created with the CARES Act in 2020 that expired at the end of 2022.
- The House Financial Services Committee held a markup this week and is set to consider a bill – the Financial Data Privacy Act (H.R. 1165) – from Chairman Patrick McHenry (R-NC) that would amend the Gramm-Leach-Bliley Act (GLBA) as it relates to data privacy.
Lessons From Outside The U.S.
While GAC is obviously focused on politics and regulation in the United States, World Council of Credit Unions (WOCCU) President and CEO Elissa McCarter LaBorde on the meeting’s final day thanked U.S. credit unions for their support and sought to highlight the ways they can learn from the global movement to improve their own operations.
Elissa McCarter LaBorde speaking to GAC.
“It is the U.S. credit union system that, roughly a year ago, helped us raise through our Worldwide Foundation for Credit Unions nearly $2 million in philanthropic donations to support credit unions in Ukraine," said McCarter LaBorde, referencing WFCU's Ukrainian Credit Union Displacement Fund. "And we have kept the doors open among credit unions in Ukraine lending to farmers who are part of protecting food security. They are some of the only ones lending in the country—certainly the only ones in rural communities and small towns. So, thank you for enabling us to be where it matters."
Get Engaged
McCarter LaBorde also called on GAC attendees to get even further engaged with the wider global credit union movement to boost the performance of their own credit unions, WOCCU noted.
“Credit unions in Canada, Australia and Brazil have already thrived in open banking. Credit unions in Kenya, called SACCOs, the savings and credit cooperatives, are rolling out neo-banking for credit unions—leapfrogging many of the legacy tech systems that hold us back in a lot of places,” said McCarter LaBorde.
Examples of Responding to Climate Change
With the World Council saying climate resilience and sustainable finance are now a major strategic focus for the organization, McCarter LaBorde also highlighted the ways some credit union systems are taking the lead in that area.
“Credit unions in Costa Rica, Australia and Colombia are many years ahead in defining how they serve customers in the midst of climate change. They’re investing in biodiversity; they’re investing in regenerative products; they’re a part of the acknowledgment that we have to move to a greener economy for ourselves and for our customers. So, my message is—get engaged. Take advantage of this global network. That is what World Council of Credit Unions is here to represent.”
Tell the Story
Finally, McCarter LaBorde made one more request of attendees as they left GAC to meet with their members of Congress.
“Please tell our story when you ‘Hike the Hill.’ Because credit unions are uniquely positioned, not only in the United States, but in so many other countries—in rural communities, in urban centers, across dispersed islands. We are where it matters, and we are part of making financial systems work for everyone.”