Legislative Update with Chesney

From CU visits across South Dakota to a historic celebration in Pierre, it’s been a packed week! Plus, major moves in D.C. could impact our tax status.

by Chesney Garnos, Executive Director of Government Affairs
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​What an action-packed week it’s been! Over the past few days, I had the privilege of visiting three incredible credit unions across South Dakota. A huge thank you to Explorers FCU, Healthcare Plus FCU, and Area FCU for your warm hospitality and the meaningful conversations. It was great to hear about the innovative updates happening within your credit unions and to share insights on the latest developments out of Washington, D.C.

​Celebrating 100 Legislative Sessions in South Dakota
Over the weekend, I returned to Pierre to commemorate a major milestone—100 sessions of the South Dakota Legislature. The day was filled with rich conversations and reconnections with both current and former legislators. I was honored to visit with U.S. Senator Mike Rounds, Governor Larry Rhoden, First Lady Sandy Rhoden, former Governor Dennis Daugaard, and Lieutenant Governor Tony Venhuizen. Listening to their stories and reflections on how far we’ve come was truly inspiring—a reminder of the dedication and vision that have shaped South Dakota over the years.

Congress
This past week on Capitol Hill, the Senate confirmed more nominees for the Trump administration. Meanwhile, both the House and Senate took significant steps to dismantle existing federal regulations—moves that now await the President’s signature.
 
What’s Headed to the President
Three major resolutions under the Congressional Review Act (CRA) passed through both chambers this week, setting the stage for major regulation rollbacks:

• S.J.Res. 28: A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications” passed 219-211
• S.J.Res. 18: A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to “Overdraft Lending: Very Large Financial Institutions” passed 217-211
• H.J.Res. 20: Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Energy relating to "Energy Conservation Program: Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters" passed 53-44

 
House Action and the Budget
In the House, things were anything but smooth. While some non-controversial bills passed unanimously, two deeply divisive pieces of legislation barely scraped by. A brief rebellion even flared up over the handling of discharge petitions—an internal House process that gives rank-and-file members the power to force votes on stalled legislation.
 
But perhaps the most consequential development was the House’s reluctant acceptance of the Senate’s budget resolution—a critical first step in the budget reconciliation process. The final vote? A razor-thin 216–214.
 
What Happens Next?
Members of both the House and Senate will be returning for District work periods at the end of this month. With topline numbers locked in, the real battle begins: deciding how money is spent—or cut. This is where appropriators and party leadership will clash over the details that affect everything from healthcare and education to environmental programs and public safety. The reconciliation process means only a simple majority will be needed to pass the final budget bill in both chambers—no Senate filibuster will stand in the way.
 
This is where our credit union tax exempt status could come into play. Upon their return to DC, we anticipate that this bill will be drafted in the House Ways & Means Committee, so we are ready to be all hands on deck to ensure our lawmakers known our tax status is not up for discussion. You can view essential Don’t Tax My Credit Union materials here.

For any questions following the legislative session or other advocacy-related queries, please don't hesitate to reach me at [email protected].