Legislative Update with Kenley

​Update on federal action; Trump Accounts; and our upcoming South Dakota Legislative Day.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement

National Defense Authorization Act Update
The Senate last week passed the National Defense Authorization Act, which now heads to President Trump’s desk to be signed into law. The bipartisan Renewing Opportunity in the American Dream to Housing package was ultimately not included in this legislation, nor were other credit union provisions, including the Central Liquidity Facility Enhancement Act. The second session of the 119th Congress will start on January 3.
 
Trump Accounts
Under current Treasury guidance, any institution approved as an IRA trustee or custodian may offer Trump Accounts, which suggests credit unions are eligible if they meet existing requirements. However, the Dakota Credit Union Association (DakCU) and America’s Credit Unions (ACU) want clear confirmation to ensure credit unions can participate without regulatory ambiguity.
 
Trump Accounts provide a $1,000 federal contribution for children born between January 1, 2025, and December 31, 2028, with parents allowed to contribute up to $5,000 annually. These accounts function as custodial trusts until age 18, then convert to an IRA-like structure.
 
DakCU and ACU argue that credit unions are uniquely positioned to administer these accounts, citing their strong compliance frameworks, consumer protection standards, and mission-driven focus on member financial well-being. Both organizations have formally requested Treasury to include credit unions in its forthcoming guidance.
 
Event Reminder: South Dakota Credit Union Legislative Day – February 11
Join us in Pierre on February 11 for South Dakota Credit Union 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. This is a free event for DakCU members, but we do ask you to kindly register in advance so we can plan accordingly.

Please note: The room block at the ClubHouse Hotel and Suites is now full. If you still need a room, please reach out to me directly at [email protected] and I will help secure an additional room.

Stay Connected
For more information or to share your perspectives, feel free to contact me. ​