Committee hears support for bill to let counties, towns deposit funds in credit unions

Sen. Speros Manteigne, chair of the Senate Banking, Business Insurance and Technology Committee, opened a hybrid hearing on Senate Bill 247 and described the measure as clarifying that counties and municipalities may deposit revenues in depository banks or credit unions, expanding an authority the state already has.

Supporters who testified in person told the committee the change would increase competition for public deposits and allow local governments to keep funds in community financial institutions. Maurice Dawkins, president and CEO of American Spirit (a Newark-based credit union), said his institution has "over $770,000,000 in assets" and serves more than 12,000 members, and argued that local deposits would be reinvested into the community. "This increased competition and access to better rates...saves these governments money that will help citizens more efficiently," Dawkins said.

Jessica Avery, director of advocacy for the Cooperative Credit Union Association, said Delaware credit unions serve nearly 300,000 residents and deliver specialized programs for first-time buyers and lower-cost mortgage options. "Expanding local government choice into credit union deposits further builds the community relationships and capital necessary for community housing programs," Avery said, adding that credit unions approved nearly half of mortgages for low- and moderate-income borrowers in recent years.

Michael Edwards, counsel for the Cooperative Credit Union Association, and John Bretsakison, president and CEO of the Delaware Credit Union Association, told the panel the bill removes a legal gray area in Delaware law by expressly permitting county and municipal deposits at credit unions. Edwards noted that federal law already authorizes federal credit unions to accept government deposits, and the bill would align Titles 9 and 22 of the Delaware Code with that practice.

Dan McCarthy, president and CEO of Del 1 Federal Credit Union, said his institution holds roughly $990,000,000 in assets, operates 16 branches and employs about 210 Delawareans, and he described credit unions' ability to lend deposits back into local communities. McCarthy cited industry totals presented to the committee (about $1.9 billion in loans by Delaware credit unions in 2025) to illustrate local lending impact.

Committee members asked whether the bill would affect municipal charters or require a two-thirds vote; the chair deferred to the drafting attorneys and said he would follow up on the legal questions. No committee vote was taken on SB 247 during the hearing.

The committee closed the public-comment period after in-person testimony; no virtual speakers rose to speak. The chair then entertained and accepted a motion to adjourn, and the committee adjourned without taking further action on the bill.