April 15, 2025
Dear Credit Union Leaders,
Spring is here! Right? … Our team has returned from the U.P. Chapter Annual Meeting, and congratulations to the chapter on another fantastic and successful event! As we hopefully make the turn to warmer weather soon, here are the updates you need.
Advocacy
In Lansing, the state legislature has returned from their Spring Break. The legislature will presumably begin work on the FY26 state budget, although early indications appear that the process may become more drawn out this year. Our priorities include advocating for continued funding for CDFIs along with creation of a more permanently structured state fund, as well as renewed funding for the Michigan Saves loan loss reserve. Policy priorities have been slower to develop this year, but notary issues and a look into “deed fraud,” UCC modernizations that include e-signatures for wires and a framework for taking security interests in intangible currencies, and issues surrounding vehicle security interests are potentially on the horizon. There are no new rumbles of state-level interchange legislation, but our team remains vigilant.
In Washington D.C., our entire industry’s focus continues to be squarely on the “Don’t Tax My Credit Union” campaign. As mentioned in prior editions, we know that our status will be under at least technical consideration as a “pay for” for any tax cuts, and the banks continue to push taxation of “large” credit unions – those with $1 billion or more in assets. As mentioned previously, the U.S. House Ways and Means Committee has begun the drafting process, and has taken it largely behind closed doors. As this process continues, our primary mission as this unfolds remains ensuring from the beginning that any bill that is drafted does not include credit unions of any size. A sign-on letter was sent to the Ways and Means Committee last week from many of their peers in Congress urging them to leave credit unions untouched in this process – the list of 20 Republicans and 16 Democrats included our own U.S. Reps. John Moolenaar, Jack Bergman and Rashida Tlaib. President Trump has called for delivery of the tax cut reauthorization bill to his desk by early May, and Congress has adopted its procedural resolutions to pave the way for action on a bill, but the congressional process still has steps to play out.
If you have not yet, we strongly encourage you to make use of ACU’s Grassroots Action Center to send an email communication to our delegation voicing support for protecting credit unions’ tax status. You can access a template email at:
Grassroots Action Center | America's Credit Unions – Click on “Tell Congress: Don’t Tax My Credit Union – It’s A Tax On Me.”
There are a pair of possible templates that can be used, and you can add to it to create your own unique note. Please share this link with your employees and volunteers and encourage them to communicate as well. For those credit unions that are willing, the link can also be shared with members; and our team would be happy to assist with any pointers on making that communication. THE TIME TO ACT IS NOW!!
Legislation to roll back the CFPB’s rule capping overdraft fees for institutions $10 billion or larger in assets has been passed by both chambers of Congress. Congress also passed a measure to undo the agency’s rule related to "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.” For a full update on state and federal regulatory action, please see the RegCorner update in this edition of MI League Minute.
Grassroots and Advocacy Funding
Registration is still open for MCUL’s State GAC! You can access registration and hotel information at mcul.org/mcul-gac. Please act now if you plan to attend, as our preferred hotel rate is set to expire soon. Stay tuned for information on the event on our website, and please direct any questions to DaeSean (DaeSean.Ashby@mcul.org) or Kieran (Kieran.Marion@mcul.org).
As mentioned in our prior editions, with regard to federal PAC permission agreements, please continue to keep an eye out for communications about renewal if you are still currently expired for 2025. We still need agreements from a handful of credit unions! Thank you to everyone that has already completed theirs and sent it in! Completing and submitting these forms is not an agreement to participate in any particular programs, and we will not solicit your members or employees without the permission of your credit union. This is purely a compliance requirement on our end. Please feel free to contact Todd (Todd.Jorns@mcul.org) or any member of our team with any questions.
Elections
There is still no news on any special election in the state Senate to replace former state Sen. Kristen MacDonald-Rivet, who won election to Michigan’s 8th Congressional District seat last November.
We will continue to monitor the movements of potential candidates for the open U.S. Senate seat that will be created with U.S. Gary Peters announcement that he will not run again. State Sen. Mallory McMorrow has formally announced that she will see the Democrat nomination, and former U.S. Rep. Mike Rogers, who lost last November to U.S. Sen. Elissa Slotkin, has announced that he will challenge for the Republican nomination for this seat in 2026.
As mentioned previously, Lt. Gov. Garlin Gilchrist II, Secretary of State Jocelyn Benson, and Genesee County Sheriff Chris Swanson have all announced they will seek the Democrat nomination for Governor next year, along with Detroit Mayor Mike Duggan seeking the office as an Independent. Former Attorney General Mike Cox and U.S. Rep. John James have now both announced they will seek the Republican nomination, joining state Senate Minority Leader Aric Nesbitt in that contest. As additional candidates for these seats formally announce (or depart a given race before the filing deadline), we will continue to include them going forward.
As always, thank you for all that you do for Michigan’s credit unions!
Sincerely,
Patty Corkery and the MCUL Advocacy Team
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