SACRAMENTO, Calif. — Nearly 175 credit union leaders gathered at the state capitol this week for the 2026 California Government Relations Rally, holding close to 100 meetings with state lawmakers and representing 14.4 million credit union members, according to California’s Credit Unions.
California’s Credit Unions said attendees took part in a two-day event that included guest speakers, panel discussions, networking and advocacy efforts aimed at shaping state policy.
The rally began at The Citizen Hotel with a two-hour CEO roundtable, where participants discussed industry challenges and innovations, California’s Credit Unions said. Leaders also met with officials from the California Department of Financial Protection and Innovation, received a political overview from NBY Consulting Inc., and heard a state budget briefing from the California Legislative Analyst’s Office.
The first day also featured a panel titled “Telling The Credit Union Story,” followed by networking and fundraising events, including visits with Senate Banking and Financial Institutions Committee Chair Tim Grayson and California Sen. Laura Richardson, according to California’s Credit Unions.
On Tuesday, attendees conducted a full day of legislative visits, meeting directly with lawmakers and their staff.
‘Original Financial Protectors’
“Credit unions are the original consumer financial protectors, a message that was clearly heard all day as we visited with lawmakers and their aides,” Jeremy Empol, president and CEO of California’s Credit Unions, said in a statement. “Through sharing the stories of more than 14 million members, credit union leaders made sure our industry’s perspective remains front and center in California policy discussions.”
A central focus of the rally was opposition to a proposal from the Legislative Analyst’s Office that would tax non-member credit union income. California’s Credit Unions said attendees argued the proposal mischaracterizes credit union revenue, noting that income from sources such as ATM fees, interchange and investments is returned to members through lower rates and fees.
Nearly $3 Billion in Financial Benefits
According to data shared during the event, that model generated $2.9 billion in financial benefits for Californians in 2025, averaging $202 per member. Attendees also warned that such a tax could prompt state-chartered credit unions to switch to federal charters, reducing oversight and revenue for the state regulator, California’s Credit Unions said.
The association said advocates also addressed fraud concerns, citing Federal Trade Commission and FBI data showing Americans lose up to $138 billion annually to scams. Since 2020, Californians have reported more than 723,000 fraud cases totaling over $3.3 billion in losses, according to California’s Credit Unions.
Credit union leaders urged lawmakers to reject Assembly Bill 2674, which would hold financial institutions liable for certain fraud-related transactions originating outside the banking system. They argued that financial institutions should not be held responsible for crimes carried out by organized fraud networks and called for a coordinated response involving technology platforms and law enforcement.
The group also referenced a report by the Little Hoover Commission that did not recommend holding financial institutions liable for fraud-induced authorized transactions.
Other Issues Discussed
State-Level CRA
Another issue discussed was Assembly Bill 801, which would establish a state-level Community Reinvestment Act. Although the bill has been moved to a two-year status, California’s Credit Unions said advocates continued to argue it is unnecessary for credit unions.
Data presented at the rally showed credit unions outperform banks in 150 of 159 Home Mortgage Disclosure Act metrics, including savings of approximately $58,591 on a $225,000 mortgage in minority-majority areas and more than $8,721 in savings on a $40,000 auto loan for borrowers in the lowest credit tiers, according to the organization.
Regulatory Issues
Attendees also discussed regulatory issues, including Senate Bill 825, emphasizing the need for clearer guidance on abusive standards and warning against what they described as regulation by enforcement.
California’s Credit Unions said participants stressed the importance of maintaining a strong state-charter system to preserve local oversight and flexibility for innovation, including the use of artificial intelligence and small-dollar lending to underserved communities.
“Once again, this year’s GRR renewed our movement’s commitment to advocacy,” Robert Wilson, senior vice president of state advocacy for California’s Credit Unions, said in a statement. “Thanks to every credit union advocate who attended, our voices made sure California’s credit union member-owners remain at the forefront of the state’s economic and policy landscape as the legislative session continues.”
