Town Hall Highlights

Advocacy Engagement: Grass Tops vs. Grassroots

The meeting opened by reinforcing an important distinction:

• Grass tops advocacy includes credit union leaders, boards, staff, and advocates.
• Grassroots refers to member activation, which the League reserves for the most serious issues.

Current efforts are focused on grass tops engagement, meaning credit union professionals should be prepared to respond quickly to targeted action alerts.

Federal Advocacy Update

Credit Card Rate Cap Proposals

The most significant federal issue discussed was the renewed focus on a proposed 10% credit card interest rate cap, following recent statements from the President and the introduction of several bills in Congress.

The League continues to oppose government‑mandated rate caps, which would:

• Limit operational flexibility and risk management
• Reduce access to credit for credit‑challenged consumers
• Create unintended consequences without guaranteeing lower real costs for borrowers

At the same time, this heightened attention underscores a powerful message: credit unions already offer the best value for consumers, presenting an opportunity to proactively market your card products.

Credit Card Competition Act (CCCA)

An expected attempt to advance the CCCA as an amendment was avoided last week due to rapid advocacy engagement. While this is a positive development, the issue remains one to watch closely.

CFPB Developments

Activity at the Consumer Financial Protection Bureau has slowed significantly. Exams for supervised institutions will be virtual and less frequent. A notable win is that Section 1033 (open banking and data protection) will move through a full rulemaking process, allowing credit unions time to engage and advocate.

Regulatory Update

NCUA Update

NCUA Chairman Kyle Hauptman has been nominated to the Public Company Accounting Oversight Board and is expected to transition following Senate confirmation.

Additional Regulatory Updates

• NCUA has issued their 2026 Supervisory Priorities which will be a topic during our upcoming NCUA Region West town hall on February 17, 2026. 
• NCUA has 12 active Deregulation proposals that ICUL's Compliance Team is working on providing comments. 
• ICUL's CRA Advisory Committee's feedback on the CRA examination questionnaire has been submitted to IDFPR for review and consideration. 

State Advocacy Update

Interchange Fee Prohibition Act

This remains the most pressing issue for Illinois credit unions. The League is:

• Awaiting decision on the preliminary injunction from the Northern District Federal Court
• Pursuing full repeal in the General Assembly
• Preparing contingency plans as the July 1 implementation date approaches

Additional State Issues

In addition to defending against harmful proposals, the Illinois Credit Union League is proactively advancing legislation to modernize the Illinois Credit Union Act and clarify state law. These efforts include updating statutory authority for digital asset service provider relationships; bringing federal parity provisions into Illinois law, including authority to sell debt protection and cancellation products and investment authority for commercial mortgage related securities/collateralized mortgage obligations; governance clarity about meeting minutes, and flexibility regarding registered agent requirements. This legislation has been filed as HB 4770 and SB 3113. 

ICUL is also pursuing legislation to address two appellate court decisions that would have negative implications on credit unions as secured lenders. SB 2951 amends the Probate Act to address the priority of properly perfected mortgage liens and the Code of Civil procedure to clarify that a 10-year statute of limitations applies to HELOCS, both bringing beneficial changes to credit unions following these decisions.

Upcoming Advocacy Events

• Governmental Affairs Conference (GAC) – March 1–5
  Illinois event registration deadline: February 13
  Includes Hill visits, Illinois‑only events, and a Wednesday lunch with Senator Tammy Duckworth.
• State Legislative Summit – April 14 (Springfield)
  Registration is open; agenda will be finalized closer to the event.
• Election Reminder
  Early voting begins February 5, with the primary election on March 17, 2026.

What Credit Unions Should Do Now

• Watch for action alerts and be ready to respond quickly
• Market your credit card products amid growing affordability discussions
• Register for upcoming state and federal advocacy events
• Reach out to the League’s advocacy team with questions or concerns

The next Town Hall is scheduled for February 17, 2026 and will feature NCUA Regional Director Julie Cayse and her team.