December 2, 2025
Dear Credit Union Leaders,
We hope everyone had a safe and wonderful Thanksgiving holiday! As we draw closer to the end of the year, here are the updates you need!
Advocacy
In Lansing, our team has been working with stakeholders and the sponsor on a bill that would expand investment options for public entities to include certain federal entities. Concerns over the legislation as drafted include an apparently inadvertent exclusion of credit unions from being able to advise and assist these entities in making these investments, and more broadly, whether access to these types of investments would negatively impact deposits in Michigan credit unions and banks. The sponsor has indicated his willingness to fix the inequity issue, and will continue to work with stakeholders on the overarching policy concerns as the year draws to a close. As mentioned previously we continue to work in the early stages of positioning targeted operational MCUA updates for credit unions, and we are watching carefully for signs of state-level interchange legislation in the new year. Legislation is being finalized for introduction to modernize the state’s Uniform Commercial Code for updates addressing emerging technologies like digital assets, providing legal clarity for transactions involving virtual currencies and other digital assets, and other modernizations related to wire transfers and electronic signatures. These bills should introduced before the holiday break in December, or shortly thereafter.
In Washington, D.C., the following priorities are noteworthy:
U.S. Senate appropriators released their FY 2026 Financial Services and General Government (FSGG) draft tax bill last week, with several credit union priorities addressed. Under this proposal, the CDFI Fund would receive $324 million (identical to FY 2025, and the NCUA’s Community Development Revolving Loan Fund (CDRLF) would receive $3.272 million (a slight decrease from FY 2025’s $3.465 million). The Trump Administration’s budget proposal eliminated funding for both but the U.S. House’s version, which has passed the U.S. House Appropriations Committee, contains $276.6 million for the CDFI Fund and $3.4 million for the CDRLF in FY 2026. MCUL and America’s Credit Unions support full funding for the CDFI Fund and the CDRLF, and urge Congress to use the Senate’s proposed funding level for the CDFI Fund to provide maximum opportunities for these programs.
NCUA Chair Kyle Hauptman will testify before the U.S. House Financial Services Committee this week. Topics will include the proposed FY 2026 NCUA Budget; examination and supervision parity; interest rate ceilings; capital relief; CAMELS modernization; and GENIUS Act implementation. MCUL will continue to track developments and initiatives at NCUA, with particular interest in GENIUS Act implementation as measures in our state legislature and regulatory structure continue to arise.
The final text of the National Defense Authorization Act is not expected until later this month, but the Leagues and America’s Credit Unions continue to offer support for two amendments included in the Senate-passed version of the NDAA. These would provide enhancements to the NCUA’s Central Liquidity Facility, and enhance support for the CDFI Fund. MCUL Advocacy and America’s Credit Unions will continue to oppose any efforts to include harmful interchange amendments in this must-pass legislation.
America’s Credit Unions have now offered support in Congress for H.R. 4936, the Taskforce for Recognizing and Averting Payment Scams (TRAPS) Act as well as the draft Regulatory Efficiency, Verification, Itemization, and Enhanced Workflow (REVIEW) Act to amend the Economic Growth and Regulatory Paperwork Reduction (EGRPRA) Act of 1996.
Grassroots and Advocacy Funding
Letters will be going out this week and next for the 2026 Lapel Pin Program to benefit MCULAF, our state PAC. This program is absolutely critical for our state advocacy efforts, but it is noteworthy that shipping costs have risen sharply over the past year or two and that trend will likely continue. Over the course of this year, we will be asking participating credit unions to actively consider shifting to a payroll deduction system for this program, or at least designating a central contact for distribution within the credit union, to better enable bulk shipping to credit unions. This will help reduce overall program costs and keep the pins affordable for our participants. We will still ship directly to donors as requested, but we are grateful for any and all assistance from our participating credit unions! For our donors and program administrators, please keep an eye out for the program kickoff letter and contact Laura (Laura.Osminski@mcul.org) or DaeSean (DaeSean.Ashby@mcul.org) with any questions.
Rivalry Week 2025 against our credit union colleagues in Ohio concluded last Saturday. Unfortunately, we did not win but collectively over $10,000 was raised between both states. We’ll get ‘em next year! For those credit unions without current permission agreements for our federal fund, MCULLAF, or whose agreements are about to expire, we have sent out renewal requests and thank you to those that have already responded. As a reminder, signing the permission agreement is NOT an agreement to participate in any programs, nor will we directly solicit your membership to participate. It is simply a regulatory requirement for more detailed communication with YOU about our federal fund’s activities.
Elections
Former U.S. Rep. Mike Rogers still remains the only formally announced candidate for the Republican nod for U.S. Senate next year. There have been no recent additions into the Democrat’s primary race for the U.S. Senate seat, with state Sen. Mallory McMorrow, Dr. Abdul El-Sayed, and U.S. Rep. Haley Stevens as the announced candidates in that field. 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. Announced candidates for the Republican nomination include former Attorney General Mike Cox, U.S. Rep. John James, state Senate Minority Leader Aric Nesbitt, former state House Speaker Tom Leonard, Rev. Ralph Rebandt and Karla Wagner. No high profile candidates in these races or in any of our U.S. House races have dropped out.
The Special Primary Election in state Senate District 35 covering portions of Bay, Midland, and Saginaw Counties will take place on February 3, and the Special General Election on May 5. Democrats filed include Brandell Adams, Martin Blank, Chedrick Greene, Serenity Hope Salak, William Morrone, and Pamela Pugh. Republicans filed for the seat include Jason Tunney, Chadwick Twillman, Christian Velasquez and Andrew Carlos Wendt.
As always, thank you for all that you do for Michigan’s credit unions!
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