Legislative Update with Kenley

SD voters have a few days left to register for the July 28 gubernatorial runoff election. Meanwhile, the NCUA has reaffirmed that federal law preempts state interchange fee restrictions for federal credit unions.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement

Vote in the July 28th Governor Runoff
South Dakota voters, don’t miss your opportunity to make your voice heard in the upcoming gubernatorial runoff election on July 28. There are only a few days remaining to register to vote and be eligible to participate, so it’s important to act quickly if you haven’t already. Early voting is also available, allowing you to cast your ballot ahead of Election Day. Check with your local county auditor for early voting locations, dates, and hours. If you’re already registered, take a moment to confirm your status and make a plan to vote.

NCUA Rule Confirms Federal Preemption of State Interchange Fee Laws, Effective June 2026
The National Credit Union Administration (NCUA) has published an interim final rule confirming that the Federal Credit Union Act preempts the Illinois Interchange Fee Prohibition Act (IFPA) and similar state laws. The rule, effective June 30, 2026, makes clear that federal credit unions may continue charging non-interest fees, including interchange fees, without interference from state-level restrictions.

This action reinforces the stability and consistency of the national payments system and helps avoid a patchwork of varying state regulations. Credit union leaders praised the move, noting that the Illinois law would have created confusion for consumers and imposed complex compliance burdens on financial institutions.

While the NCUA and OCC have both affirmed federal preemption, the issue is still playing out in the courts, where final authority will determine how these rules are applied. Meanwhile, Illinois lawmakers have delayed the IFPA’s implementation to July 1, 2027, as legal challenges continue to move forward.

Registration Now Open: PAR for the PAC Golf Event
Registration is now open for the PAR for the PAC golf outing! Join us at Meadowbrook Golf Club in Rapid City for a great day of golf and advocacy.

The cost to participate is $200 per golfer, with 100% of proceeds going directly to the PAC. Every dollar raised will stay right here in South Dakota to support candidates who champion the credit union movement.

We also have sponsorship opportunities available. If you are interested in sponsoring—or know someone who may be, please reach out to me at [email protected].

Don’t miss this opportunity to support advocacy efforts while enjoying a great day on the course!

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