Legislative Update with Kenley

CDFI reversal; major SCOTUS agency cases; penny production ending; and SD Legislative Day on Feb. 11.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement

Trump Administration Reverses Cuts to CDFI Fund After Credit Union Advocacy
The Trump administration has rescinded plans to reduce staff at the Community Development Financial Institutions Fund (CDFI) , following a coordinated push by the Dakota Credit Union Advocacy Team and America's Credit Unions. Advocates highlighted that every dollar granted through the program generates $12 in private investment, prompting 103 Republican lawmakers to reaffirm support for the fund in a letter to the administration.

SCOTUS Declines Review of NCUA Board Removal; FTC Case Could Redefine Agency Independence
The Supreme Court (SCOTUS) on Monday refused to hear a challenge over the removal of National Credit Union Administration board members, leaving the dispute in lower courts as justices prepare to weigh a separate case on whether presidents can fire Federal Trade Commission (FTC) commissioners at will. The upcoming arguments could reshape decades-old limits on presidential power over independent agencies.

The NCUA case stems from the Trump administration’s decision to remove board members before their terms expired, a move critics say violated statutory protections. Meanwhile, the FTC case scheduled for oral arguments next week could overturn the 1935 precedent in Humphrey’s Executor, which has long insulated independent regulators from political interference. A ruling against that precedent could allow presidents to dismiss agency heads at will, altering the structure of financial and consumer protection oversight.
 
Treasury Halts Penny Production, Citing Rising Costs; Coins Remain Legal Tender
The U.S. Treasury stopped minting pennies on November 12, saying the one-cent coin now costs nearly four times its face value to produce. Officials estimate the move will save 56 million annually, though billions of pennies remain in circulation and will continue to be accepted for purchases and deposits.

Congress is weighing the Common Cents Act to standardize rounding cash transactions to the nearest nickel, but no federal mandate has been issued. Financial institutions are adjusting as the Federal Reserve ends penny orders and some locations stop accepting deposits, prompting credit unions to update cash-handling procedures and prepare for increased nickel demand.
 
South Dakota Legislative Day – February 11
Join us in Pierre on February 11 for South Dakota Legislative Day! We’ll start the morning at the Capitol with coffee and donuts for legislators, followed by the SD GAC annual meeting, a group photo in the Rotunda, and formal introductions on the House and Senate floors. Later in the day, we’ll host a Legislative Leadership Panel and wrap up with a networking social to strengthen relationships with lawmakers and fellow credit union advocates. Rooms are available at the ClubHouse Hotel and Suites under the DAKCU block—call to reserve 833-372-9713.

The Roger Heacock Scholarship: A Gateway to the GAC Experience
DakCU is offering the Roger Heacock Scholarship again, giving two lucky Dakotans the chance to attend the Governmental Affairs Conference (GAC) in Washington, D.C., the largest annual credit union event of the year, held March 1-5. Hosted by America's Credit Unions, the GAC gathers thousands of industry leaders, advocates, and policymakers to discuss and influence the future of credit unions. This is a rare chance to represent the Dakotas on a national stage and shape the future of financial services while participating in one of the most impactful gatherings in the credit union movement. Get more information and apply here. 
 
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