CEO Update: Advocacy and Independence

As our nation marked its 248th Independence Day, many celebrated with barbeques, attended parades, and watched fireworks. I am always proud to witness flag displays, patriotic ads on TV and the internet, and of course, heartfelt social media posts. Particularly moving are the tributes to our veterans during these festivities.

However, another profound event occurred just a few days earlier. The Supreme Court reversed its landmark 1984 decision in Chevron v. Natural Resources Defense Council, which gave rise to the doctrine known as the “Chevron deference” doctrine. In doing so, America is now free from 40 years of administrative rule.

Is this newfound independence a positive change, or does it bring concerns? As with many questions, the best answer is the War College answer—it depends.

Over the past four decades, regulatory agencies have been allowed to interpret various statutes with little judicial remedy or oversight. As a result, unelected bureaucrats could impose varying rules, some stricter and some more lenient. Over time, these administrative guidelines became commonplace.

However, as the federal workforce retired, new administrative leaders started to reverse and re-interpret prior positions to serve their own purposes. DCUC has seen this with the DoD’s Financial Management Regulation and overseas banking rules such as the erosion of the “one bank and one credit union” policy and the contract’s requirement for federal deposit insurance.

Yet, these shifts are not consistent with the Administrative Procedures Act. Agencies have long operated knowing courts would uphold their decisions and interpretations under the “Chevron deference” doctrine. Therefore, changing the laws through Congress has been challenging amid increasing legislative “gridlock.”

On the other hand, are we headed for administrative “chaos” because of this landmark decision? Consistency and precedent have their virtues, especially if one favors the status quo. Thus, this ruling may be unwelcome to some.

While legal challenges are likely on the horizon, the Administrative Procedures Act still provides a review of any sudden changes. Plus, there are still Congressional avenues that remain open. This just reaffirms how advocacy will play a crucial role in the aftermath of this landmark decision.

This advocacy must evolve from recent years. It will require) active listening to all points of views, swift coordination on all advocacy strategies, and a fierce defense of your interests. DCUC has already demonstrated its value as an independent voice and is actively positioning itself as a strong voice within the new industry landscape.

I am very proud of DCUC’s efforts in re-imagining our advocacy thus far. Just as inventiveness is born from necessity, recent industry shifts, challenges, and events over the last year have compelled DCUC to adapt and strengthen our representation on your behalf.

Much like the signers of the Declaration of Independence 248 years ago, we may not know exactly where the future
regulatory environment will lead us. Yet, akin just to the spirit of 1776, we are prepared for whatever lies ahead.

I know DCUC stands ready, mainly because we have been preparing and perfecting our approach over the last 12 months. The best is yet to come. I look forward to sharing more at our Annual Conference next month. DCUC will have much to disclose and discuss. See you there!