Throughout the 2025 legislative session, the New York Credit Union Association has conducted a comprehensive advocacy campaign to advance legislation supporting credit union members while protecting the industry from statutory overreach. The Association’s multifaceted efforts now face their ultimate test as Governor Hochul decides the fate of 161 bills awaiting her action.

(And for those faithful readers who don’t have time to read this full post, click here to register for the webinar on January 14th.)

Comprehensive Advocacy Strategy

The Association’s 2025 legislative work encompassed the full range of advocacy activities to serve New York’s credit union community:

• Championed member-friendly legislation to expand credit union services and reduce operational burdens
• Opposed bills that would impose unnecessary statutory requirements on credit unions
  Engaged proactively with bill sponsors to seek amendments and carve-outs protecting credit unions
• Testified at committee hearings to educate lawmakers about credit union operations and member benefits
• Built coalitions with consumer groups, business organizations, and other financial services stakeholders
• Submitted detailed position papers analyzing legislation’s impact on credit union members and operations
• Educated members about pending legislation and mobilized grassroots advocacy efforts

Four Bills at The Top of the Opposition List

While the Association’s advocacy agenda included supporting numerous pro-credit union measures, four bills required particularly intensive opposition efforts due to their potential negative impact on credit union operations:

S6953B – The RAISE Act (Artificial Intelligence Regulation)
The Association worked extensively with Senator Gounardes’ office, committee staff, and stakeholder groups to seek appropriate exemptions for financial institutions. Despite the Association’s detailed advocacy explaining how the bill’s training requirements and compliance obligations could disproportionately burden credit unions, the legislation advanced without adequate protections for member-owned cooperatives. Similar legislation has been vetoed across the country and with the talk of federal legislation voiding state AI legislation, the future of RAISE is uncertain. This legislation is pending the Governor’s signature, and the Association (along with many other business groups) is actively advocating for a veto.

S929 – New York HIPA (Health Information Protection)
The Association’s advocacy team engaged intensively with Senator Krueger’s office and stakeholders to push for explicit carve-outs for financial institutions and insurance carriers. The Association’s analysis demonstrated how the broad language could inadvertently capture credit unions processing health-related information, creating duplicative privacy requirements that conflict with existing federal frameworks. The Association has joined a large coalition requesting this bill be vetoed.

S1353B – Coerced Debt Relief
The Association mounted perhaps its most comprehensive opposition campaign around Senator Cleare’s coerced debt legislation. The Association worked with bill sponsors, committee staff, and stakeholder groups to seek amendments that would protect legitimate collection activities while still addressing genuine economic abuse. Despite extensive engagement, the bill’s expansive definition of “coercion” remained problematic for credit union operations. Hopefully if this is signed into law, subsequent chapter amendments will ease some of the burden.

S8416 – FAIR Business Practices Act
The Association engaged extensively with Senator Comrie’s office and the Attorney General’s staff to seek modifications to the legislation’s vague standards for “unfair” practices. The Association’s advocacy emphasized how credit unions’ cooperative structure and member-focused mission distinguish them from for-profit institutions, warranting different treatment under enforcement provisions.

The Stakeholder Engagement Challenge

The Association’s advocacy work requires careful navigation of complex stakeholder dynamics by balancing supporting consumer protection goals while ensuring credit unions aren’t inadvertently harmed by well-intentioned legislation. This requires extensive engagement with consumer advocacy groups, legislative staff, and other financial services organizations to build understanding of credit union operations and member benefits.

Federal Validation of the Association’s Balanced Approach

NCUA’s recently announced Deregulation Project validates the Association’s balanced advocacy approach. While the federal credit union regulator works to eliminate obsolete and burdensome requirements, the Association has consistently advocated for legislation that supports credit union members while opposing measures that would create unnecessary statutory burdens. This alignment between federal burden reduction efforts and the Association’s  state-level advocacy reinforces the Association’s strategic approach.

What the Association’s Comprehensive Advocacy Achieved

The Association’s sustained advocacy efforts throughout 2025 accomplished multiple critical objectives:

• Advanced member interests through support of beneficial legislation
• Protected operational flexibility by opposing or seeking amendments to problematic bills
• Educated lawmakers about credit union operations, member benefits, and cooperative principles
• Built upon relationships with legislators, staff, and stakeholder organizations
• Demonstrated thought leadership on complex financial services policy issues
• Mobilized grassroots engagement from credit union members and leaders
• Confirmed the Association as the authoritative voice on credit union policy in New York

The Final Test

Now, after months the Association’s comprehensive advocacy work supporting good bills and opposing problematic ones, key decisions rest with Governor Hochul.

Lessons in Comprehensive Legislative Advocacy

The Association’s 2025 campaign demonstrates the sophistication required in modern legislative advocacy. The Association successfully managed a complex portfolio of legislative priorities, supporting measures that benefit members while opposing those that would impose unnecessary burdens. This comprehensive approach enhanced the Association’s credibility and effectiveness with lawmakers and stakeholders.

But Wait, There’s More!

The Association is hosting a webinar on Wednesday, January 14th at 11:00 a.m. to provide further insight on these legislative changes, answer questions, and provide practical guidance on what credit unions should be prepared for in 2026. This session will equip attendees with the insights needed to navigate compliance impacts, operational adjustments, and emerging opportunities stemming from New York State’s latest legislative actions.

Register Here!

Until Next Time

From the big picture to the fine print, we’ve got you covered. Thanks for reading, and CU in the next post.