Legislative Update with Kenley

PAR for the PAC registration now open, plus NCUA interchange updates and new federal guidance for financial institutions.

Registration Now Open: PAR for the PAC Golf Event
Registration is now open for the PAR for the PAC golf outing! Join us August 4 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. ​Register here.

A room block is available until July 8 at the DoubleTree under “DakCU Golf.” Hotel booking information can be found here.

Sponsorship opportunities are available. If you are interested in sponsoring or know someone who may be please reach out to Kenley.

Don’t miss this opportunity to support advocacy efforts while enjoying a great day on the course!
Contributions to the PAC are voluntary and are not tax-deductible for federal income tax purposes. Contributions will be used for political purposes. You have the right to refuse to contribute without any reprisal.
 
NCUA Moves to Preempt Illinois Interchange Law, Providing Key Win for Federally Chartered Credit Unions
In significant breaking news, the National Credit Union Administration (NCUA) has taken action to confirm that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA), submitting a rulemaking to the Office of Information and Regulatory Affairs (OIRA) for review. Publication in the Federal Register is expected soon.

This is a major and welcome development—particularly for federally chartered credit unions, including those here in South Dakota. The NCUA’s action provides important regulatory clarity and reinforces federal authority over the payments system, helping protect credit unions from disruptive state-level mandates.

While litigation surrounding the Illinois law continues and uncertainty remains in the courts, this guidance offers meaningful protection and reassurance for federally chartered institutions as the broader legal challenge plays out.
We are encouraged by this step and view it as a clear win for credit unions. We will continue to monitor both the regulatory and legal developments closely and keep you updated as this issue progresses.
 
Executive Order Addresses Financial System Integrity
An executive order issued last Tuesday directs the NCUA and other federal regulators to address how financial institutions interact with undocumented immigrants.

The “Restoring Integrity to America’s Financial System” order does not require universal citizenship collection for accounts. Credit union advocates have already engaged Treasury and the Administration to highlight concerns and emphasize the strong compliance standards credit unions meet today. We appreciate the administration’s recognition that additional compliance burdens should not fall heavily on credit unions and continue to encourage any changes to move forward through a formal rulemaking process that allows for stakeholder input and adequate implementation time—priorities that appear reflected in the executive order.
 
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For more information or to share your perspectives, feel free to contact me. ​​