Legislative Update with Kenley

​Key federal developments and upcoming advocacy events are shaping important priorities for Dakota credit unions.

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The Trump administration has rescinded plans to reduce staff at the Community Development Financial Institutions Fund, following a coordinated push by the Dakota Credit Union Association (DakCU) and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.

Congress Faces Year-End Deadlines with Key Credit Union Priorities at Stake
Congress returned this week with a packed agenda and looming deadlines that could shape the environment for credit unions in 2026. Lawmakers must pass nine remaining appropriations bills or another stopgap by January 30 to avoid a funding lapse. Senate Majority Leader John Thune, is pushing to bundle major measures including U.S. Department of Defense and the Department of Labor, Health and Human Services, into one package, a move that could influence financial services priorities.

Negotiators are also working to finalize the National Defense Authorization Act, which includes a proposed enhancement to the Central Liquidity Facility (CLF) a critical backstop for credit unions during times of market stress. The bill also contains provisions on artificial intelligence and technology exports, setting precedents for data security and compliance standards.
 
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.

DakCU and America's Credit Unions are looking over the legislation as well and seeing what the best solution for our Dakota Credit Unions is.
 
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. Rooms are available at the ClubHouse Hotel and Suites under the DakCU block—call to reserve 1-833-372-9713.