Legislative Update with Chesney

​Keeping an eye on Washington with an update on the Farm Bill and overdraft protection programs. Plus, a few spots remain for our fall Hike the Hill! 

by Chesney Garnos, Director of Political & Grassroots Affairs

Congress is back in session this week. Find an update on key legislation moving through Congress, a flagged hearing, and Hike-the-Hill opportunities below.
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The Farm Bill
If you recall a month ago, Jay Kruse and I had the opportunity to weigh in on the Farm Bill as it relates to our credit union members and ag lending in the Dakotas. This piece of legislation is passed every five years and has a major impact on the Dakotas. The 2024 Farm Bill was actually set to expire in September 2023 but received a one-year extension, as Congress and the Biden Administration could not come to an agreement. Just over a week ago, the Farm Bill advanced out of the House Agriculture Committee after hours of debate and discussion on the text. The deadline for the 2024 Farm Bill is September 30, 2024. As agriculture and ag lending is a key industry in both North and South Dakota, our advocacy team will continue to follow this critical legislation and how it will impact our members as it moves over to the Senate.

L to R: Jay Kruse, CEO of Norstar FCU with Senator John Thune and Chesney Garnos.

Financial Innovation and Technology for the 21st Century Act
The Financial Innovation and Technology for the 21st Century (FIT21) Act establishes clear and functional federal requirements over digital asset markets. This piece of legislation, introduced by Rep. Dusty Johnson [R-SD] provides consumer protection and regulatory clarity for the digital asset ecosystem. In Rep. Johnson’s most recent news later, he explained this piece of legislation as ‘historic’ as America is currently the only G7 country without an established framework for digital asset trading. Interested in learning more? Check out Rep. Johnson’s op-ed with Rep. French Hill [R-AR] on the topic.

Misconceptions Surrounding Overdraft Protection Programs
The Consumer Financial Protection Bureau (CFPB) previously launched an initiative to reduce "exploitative junk fees" in financial institutions. While aimed at “protecting consumers,” this initiative has raised concerns among credit unions in North and South Dakota, and additionally across the U.S. Using the term "junk fees" in regard to classifying non-sufficient funds (NSF) and overdraft protection (ODP) programs is misleading and harmful.
NSF and ODP programs are crucial for providing real value to credit union members. Unlike hidden junk fees, these programs are transparent and offer significant benefits. Members who opt into these programs recognize their importance and value in managing their finances, many of which use these lifeline services in the Dakotas for financial planning and wellbeing. Read more about this proposed rule here.
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Committee hearings this week:

• The Subcommittee on Digital Assets, Financial Technology and Inclusion will host a Hearing Entitled: Next Generation Infrastructure: How Tokenization of Real-World Assets Will Facilitate Efficient Markets on Wednesday, June 5, 2024, 10:00 a.m. (CT). Watch Here

 
Fall Hike-the-Hill
There are a few spots remaining for our fall “Hike the Hill” in September. This event is one of a kind, allowing for a small group of credit union leaders from the Dakotas to meet with representatives from NCUA and CFPB one day, and then follow with visits to Capitol Hill for face-to-face conversations with our elected officials. This year’s Hike is scheduled for September 9 – 12. We also have financial scholarships available to offset travel and hotel costs for this event! If you are interested, please reach out to me today!

Dakota Credit Union Professionals join DakCU for previous Hike the Hill events!