WASHINGTON–Looking ahead to the 120th Congress, which will be sworn in in January of 2027, credit unions are preparing for a renewed focus on consumer financial protection, credit access, and regulatory oversight with both the House and Senate under Democratic control.
America’s Credit Unions said it will be “present and active” in engaging with new members, as well as returning members, as the new majority sets its priorities for the 120th Congress.
“Our advocacy team is tracking upcoming committee leadership races in the House and Senate and will stay engaged with members throughout the process,” America’s Credit Unions stated, noting that upcoming committee leadership races include the Senate Banking Committee (expected to be led by Sen. Elizabeth Warren (D-MA) and House Financial Services (expected to be led by Rep. Maxine Waters (D-CA).
Emphasis on Communications
Meanwhile, Defense CU Council Chief Advocacy Officer Jason Stverak said the trade group is emphasizing the importance of communicating directly with incoming congressional leaders about the “potential consequences” of proposals to impose a 10% credit card interest rate cap–a limit both Democrats and President Trump have endorsed–and additional restrictions on overdraft and nonsufficient funds (NSF) fees. Both DCUC and America’s Credit Unions have argued that restrictive lending proposals could limit access to affordable credit for individuals with limited or no credit histories.
“For many military members, a credit union may be their first financial institution, providing an initial checking and savings account and an opportunity to establish credit,” Stverak said. “DCUC believes responsible access to these products is essential to helping members build financial stability and avoid turning to higher-cost alternatives, including payday lenders,” says Stverak.
The Credit Union Tax Exemption
DCUC said it also continues to defend the credit union tax exemption against renewed efforts to impose taxes on larger credit unions. As the CU Daily reported here, DCUC recently responded to a renewed call by the president of the Independent Community Bankers of America (ICBA) that credit unions of more than $1 bill in assets lose their federal tax exemption.
Priorities in New Congress
As newly elected members begin arriving in Washington for congressional orientation, the Defense Council said it is preparing outreach to incoming representatives, senators, and key committee leadership.
DCUCs priorities include:
- Expanding field-of-membership opportunities
- Ensuring fair regulatory treatment in digital asset policy
- Advancing unfinished lending and liquidity reforms.
