What Trump’s Victory Means For Credit Unions

WASHINGTON—With Donald Trump defeating Kamala Harris to become the 47^thpresident of the United States, credit unions should be paying close attention to those appointed by Trump to head the various committees, one political expert is saying.

Defense Credit Union Council (DCUC) chief Advocacy Officer Jason Stverak shared that perspective, adding Republican leadership will hopefully end the CFPB’s heavy emphasis on so-called “junk” fees.

President-Elect Donald Trump

Trump, who won election in 2016 as the 45th president, now will be just the second candidate in U.S. history to win nonconsecutive White House terms.

“The appointees that will be made by President-Elect Trump throughout the executive branch are the ones who have the most direct and daily impact on credit unions and their members. DCUC will be watching what unfolds there closely, Stverak said.

Change, Change, Change

For credit unions, there is going to be a lot of changes in Washington, continued Stverak.

“Obviously, with the return of President Trump to Washington, you’re going to see a dramatic impact on the regulators that affect credit unions on a daily basis—from the CFPB, to Treasury, to vacancies on the NCUA board. It’s going to be a much different administration,” he said.

With the shift from Democrat to Republican leadership, Stverak said DCUC is hoping the CFPB’s focus on junk fees and trying to over-regulate credit unions will wane.

Jason Stverak

“Hopefully, this will allow us to go back to having the ability to serve our members,” he said.

NCUA Chairman

Stverak noted there will be a shift in chairmanship on the NCUA board to Republican Kyle Hauptman when Trump takes office, noting the members will stay the same.

“There’s going to be a dramatic change in the U.S. Senate, specifically the Senate Banking Committee in terms of leadership,” Stverak noted early Wednesday morning. “Obviously, with Republicans taking over, Senator (Tim) Scott from South Carolina, who has said that he is not looking to go into the administration, would likely assume chairmanship of the Committee. And with the loss of current Chairman Sherrod Brown (D) from Ohio, there will be change.”

Stverak said it appears that Senator Jack Reed (D-RI) will remain as ranking member on the Senate Armed Services Committee.

“I think next in line would come senator (Mark) Warner (D) from Virginia, but he would have to give up his ranking membership on Senate Intelligence Committee,” Stverak said.

With senator John Tester (D-MT) losing his race, it will be Senator Elizabeth Warren from Massachusetts who would be the ranking Democrat on the Senate Banking Committee.

50-50

Republicans hanging onto the House will be a coin toss, Stverak said.

“It’s going to come down to the races that have not been called, which will likely happen later today. If Republicans maintain their majority, it will be incredibly slim,” he said.

If Republicans gain control of the House and Senate?

“The most important thing is the issue of reconciliation, where Congress can move forward on budget and tax-related issues,” Stverak said. “That’s where we’re going to be vigilant, to ensure that as those negotiations and talks take place and the Trump tax cuts move forward, that credit unions’ tax status remains unaffected. That’s going to probably be a top advocacy priority for DCUC moving forward.

“In terms of regulators that impact defense credit unions, there will be new appointees at the Department of Defense and the Department of veterans Affairs, and that will impact the daily lives of the millions of active duty servicemembers, their families and veterans,” continued Stverak. “We look forward to working with those agencies to help alleviate any regulatory and other issues that defense credit unions face.”