Off the Record, On the Issues with John

A fast-moving special session on rural health funding and new national credit card policy discussions are underway.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Special Session: Rural Health Money, Policy Levers, and a Tight Clock
Bismarck is moving quickly this week. Lawmakers convened a three-day special session on Wednesday after the Governor called them back to address one primary issue: a federal Rural Health Transformation Program award and the state action required to spend it. The first-year award provides $199 million from the Centers for Medicare & Medicaid Services (CMS), tied to a five-year effort to strengthen rural health access and outcomes. Legislators are being asked to authorize roughly $398 million in spending authority across the first two years this year’s $199 million plus an anticipated second-year award expected in October 2026.

The policy component is significant because the funding is tied to specific commitments outlined in the state’s CMS application. Alongside the appropriations bill, lawmakers are considering four policy measures the administration and legislative leaders say helped position North Dakota competitively: expanding pharmacist scope of practice, adding the Presidential Physical Fitness Test in schools, requiring physician continuing education related to healthy eating, and joining the physician assistant licensure compact. One senator leading the appropriations work has cautioned that failing to pass these bills as proposed or making substantial changes could put the state at risk for reductions or future claw backs.

There is also ongoing uncertainty about how wide the special session agenda will stretch. Legislative leaders met Tuesday to determine whether additional bills beyond the rural health package will be allowed. With that possibility still open, the public process remains compressed hearings can surface quickly, and the window to review bill text and submit testimony is tight.

Bottom line: The special session is anchored by federal rural health funding, but the final outcome depends on what leadership permits to advance and how closely lawmakers adhere to the policy framework CMS expects.

Letter on the Credit Card Competition Act (CCCA) and the Proposed Credit Card Rate Cap
Last week, the Dakota Credit Union Association (DakCU) sent a letter to members of Congress outlining its concerns with the Credit Card Competition Act and the proposed 10% interest rate cap. While affordability is an important goal, the letter emphasized that these measures do not address the root causes of rising consumer costs. Instead, DakCU cautioned that they could limit access to credit for individuals with lower incomes or thinner credit histories. A strict interest rate cap could force financial institutions to scale back or discontinue certain products, narrowing consumer options and potentially pushing some toward higher-cost alternatives.

Your association will continue monitoring both issues and will keep members informed as they evolve.

The January 20 “Deadline” for a 10% Credit Card Cap Came and Went
A national conversation around credit card pricing has been gaining momentum. Earlier this month, President Trump publicly urged credit card companies to cap interest rates at 10% for one year, setting January 20, 2026, as the date he wanted the change in effect. With the announcement coming on January 9, the industry had just 11 days to respond.

Now that the date has passed, most banks and major card issuers have not lowered rates to 10%. Instead, they have largely maintained current rates and expressed concern about the lack of policy clarity needed to implement such a change. Some lawmakers in both parties continue to show interest in the concept, arguing that a cap could reduce how much consumers pay in interest. The banking industry counters that it could lead to tighter credit availability for certain borrowers.

While average credit card rates have dipped slightly over the past year, they remain well above 10% for most cardholders. What this discussion highlights is that many consumers still don’t realize a more affordable option already exists: credit unions, which are structured to offer lower rates and member-focused products by design.

DakCU will continue monitoring any national movement toward legislation, regulatory action, or shifts in how credit card access and pricing are set.

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