Credit Union PACs

Some 18 months before the 2018 House and Senate elections, credit union Political Action Committees are already filling the campaign coffers of congressional candidates.

“Early giving is always better than late money,” Trey Hawkins, CUNA's vice president of political affairs, said.

A key NAFCU official agreed.

“The 2018 election cycle is in full swing and providing support to candidates is what our PAC is built to do,” Dan O'Brien, NAFCU's director of political affairs, said. “We plan our PAC support throughout the election cycle and it allows us to get involved early and make an impact.”

And the numbers confirm those comments.

CULAC, the political arm of CUNA, had contributed more than $537,000 to candidates and related committees by the end of March, according to records on file with the Federal Election Commission. The committee had almost $721,000 on hand on March 31.

NAFCU's political arm has been active as well, contributing more than $94,000 to federal candidates and PACs by the end of March. The association's PAC had more than $386,000 on hand on March 31.

The two committees are looking to match their 2016 success rate, when some 97% of the candidates supported by the two committees were elected to the Houser and Senate.

The credit union PACs are not alone in their campaign giving. The Center for Responsive Politics reported that by the beginning of May, political committees had contributed $130 million to incumbent House members and senators.

Included in those totals are the political committees operated by banking groups. The committee run by the American Bankers Association had contributed almost $278,000 to candidates and committees by the end of March. But the ABA also is sitting on a war chest of more than $2.4 million.

The committee operated by the Independent Community Bankers of America had contributed some $251,000 to candidates and their PACs. The independent bankers had almost $371,000 on hand at the end of March.

Members of Congress often complain that fundraising has become a second full-time job for them.

Nonetheless, they appreciate the early contributions, Hawkins said. Members of Congress can use it as they develop a campaign budget. And of course, a hefty bank account might convince potential candidates to have second thoughts about a challenge.

“Building that war chest early can discourage opposition,” Hawkins said.

And even though the 2018 election seems like a long time away, CUNA and NAFCU have little trouble convincing credit union employees to contribute to their PACs.

Both use payroll deduction programs that allow members to automatically make PAC contributions.

“It's been a real boon to fundraising,” Hawkins said, adding that more than 600 credit unions participate in the payroll deduction program.

“We have a very successful payroll deduction program for eligible credit union employees that supports NAFCU PAC,” O'Brien said. And NAFCU's PAC has a unique feature.

For each dollar contributed, NAFCU makes a matching contribution to the local Children's Miracle Network Hospital.

As might be expected, both political action committees are contributing to members of the House Financial Services and Senate Banking Committees — two panels that are examining ways to overhaul the Dodd-Frank Act.

For instance, in February, CULAC contributed $2,500 to Jeb Hensarling's campaign. And in January, NAFCU contributed $5,000 to the Jobs, Economy and Budget Fund — Hensarling's leadership PAC.

And with members of Congress and the president pushing for comprehensive tax reform, and bankers pushing for eliminating the tax exemption for credit unions, the PACs are taking nothing for granted.

So, they are contributing to members of the tax-writing committees. In January, NAFCU contributed $2,500 to “Orrin PAC,” the political committee operated by Senate Finance Committee Chairman Orrin Hatch (R-Utah).

And in March, CULAC contributed $5,000 to the reelection effort of House Ways and Means Committee Chairman Kevin Brady (R-Texas).

Each also are contributing to the overall House and Senate campaign committees operated by both parties, as well as ideological PACs, such as the Republican Main Street Partnership — a group that supports moderate Republican members of Congress.

And not all of the early giving is going to 2018 campaigns. In Kansas, Republican Rep. Mike Pompeo this year resigned from the House to become CIA Director and a special election was held to fill the vacancy.

Kansas State Treasurer Ron Estes, a Republican, ran for the seat. He was intimately familiar with the credit union movement, having served on the assets and liabilities committee of MidAmerican Credit Union in Wichita.

CULAC contributed the maximum amount allowable — $5,000 — to Estes' campaign. He defeated Democrat James Thompson in an April 11 special election.

And in South Carolina, State Rep. Tommy Pope, a Republican, is facing a May 16 Republican runoff for the seat formerly held by Mick Mulvaney, who has become director of the Office of Management and Budget.

Pope is supported by credit union groups; in February, NAFCU contributed $2,500 to Pope's campaign.