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With the 119th Congress underway and the Louisiana State session kicking off in a few months, the Luminate Advocacy team has set our 2025 priorities. These priorities are focused on supporting the success of our member credit unions and the communities you all serve.
Top Priority: Protecting Credit Unions Tax-Exempt Status
As an industry, we have not had a major fight regarding our tax status in a number of years. We are currently preparing for a fight on both the federal and state level.
On the federal level, we expect Congress and the Administration to try to enact comprehensive tax reform by May, putting all means to raise revenue, including the credit union federal income tax status, on the table.
On the state level, this year is a fiscal session, which means that only bills related to state’s budget, finances, or taxes can be considered. Last year, the legislature held a special session on tax reform, we were able to successfully be amended out of HB 10 which would have subjected credit unions to the state sales and use tax. We need to remain vigilant during this fiscal session to ensure credit unions are not included in any tax legislation.
“As we face critical challenges this year, it is more important than ever for Luminate and our members to stay engaged and unified in our advocacy efforts. Preserving the credit union tax-exempt status is not just about protecting our industry—it’s about ensuring we can continue to serve our members and communities effectively,” said Anthony Ware II, Director of Legislative Advocacy. “Together, we have the opportunity to make a meaningful impact, and we are excited and energized to take on this journey, standing strong for the credit union difference and the financial well-being of the people we serve.”
Now is the time for you to get ready to help us in advocating for your tax-except status:
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Collecting Member Stories Initiative: Join us on January 23 at 11:30 am to understand the importance of telling your story and how Luminate plans to use stories in our advocacy efforts. Our goal is to collection at least three stories per Congressional District. Register to attend call.
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Participate in Advocacy Programs (MAP & Project Zip Code): We will be hosting a training call on January 28 at 2:00 pm to give more information on the MAP and Project Zip Code programs and the importance of participating in these programs. Register to attend training.
Remaining Priorities
Protecting Interchange
Interchange fees are essential for covering the costs of processing transactions and protecting members from fraud. Maintaining the current structure safeguards credit unions’ ability to offer affordable and secure payment solutions. Proposals that would allow merchants to select the processing network based solely on cost could expose members and consumers to increased fraud risk. Many lower-cost networks lack the robust security measures credit unions rely on to safeguard member transactions. Efforts to cap or reduce interchange fees would harm members by increasing operational costs, limiting access to modern payment systems, and potentially raising overall fees for services.
Allowing New Investment Options
Expanding permissible investment opportunities enables credit unions to grow their portfolios responsibly and offer more robust services to members. New investment options could enhance revenue streams, support financial stability, and enable credit unions to provide innovative products that meet evolving member needs while maintaining safety and soundness.
Improving Access to Credit Unions
Give more people and businesses the ability to join and partner with a credit union for their financial needs. Potential regulatory policies, such as those tied to the Community Reinvestment Act, would limit credit unions’ ability to serve broader and more diverse communities. Opposing these barriers and removing existing ones, would enable credit unions to fulfill their mission of financial inclusion, ensuring that individuals and businesses in underserved and economically disadvantaged areas have access to affordable financial services. Modernizing these regulations would allow credit unions to grow sustainably while meeting the needs of evolving communities.
Updating State Charter Model Bylaws
Last year we convened a special taskforce to review the current state charter model bylaws in an effort to propose recommendations to modernize them to LOFI. Through these meetings and discussions, we were successful in presenting our recommendations to LOFI during our Annual LOFI Roundtable on Nov. 12th, 2024. Now that we have presented our recommended changes, they are being reviewed by LOFI for final approval. We have and will remain in contact with the office to work through any matters of importance until they are finalized, approved, and adopted. Thank you to the members of the taskforce (Jeff Conrad, Michelle Duhe, Rick Williams, Chad Miller and Steve Webb) for their hard work and dedication to the taskforce.
Laying the Groundwork for 2026
Particularly on the state level, due to us not being able to introduce broad legislative reforms this session, we will be actively preparing for the future by fostering relationships and gathering support. By positioning credit unions for future success, we are ensuring that our priorities are well-supported when the opportunity for legislative change arises in the 2026 session.
As the voice of credit unions across Louisiana, we are working tirelessly to ensure our credit unions can continue delivering affordable, member-focused financial services that empower individuals, families, and businesses.
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