Federal Developments and Election Activity Shape the Months Ahead

Recent federal developments continue to provide greater clarity for credit unions navigating interchange fee litigation and broader regulatory changes. Following the NCUA's interim final rule confirming that the Federal Credit Union Act preempts the Illinois Interchange Fee Prohibition Act (IFPA) and similar state laws, a federal district court issued a permanent injunction blocking enforcement of most provisions of the Illinois law. Together, actions taken by the NCUA, the Office of the Comptroller of the Currency, and the courts provide additional certainty for credit unions as legal challenges surrounding the law continue.

Several federal issues also remain on the horizon that could shape the future of financial services and the credit union movement. The NCUA recently released a proposed rule establishing operational and risk management standards for NCUA-licensed permitted payment stablecoin issuers under the GENIUS Act. Congress also reached a bipartisan agreement on the 21st Century ROAD to Housing Act, bringing the legislation one step closer to final passage. The bill includes the Credit Union Board Modernization Act and provisions designed to streamline the formation of de novo credit unions, along with broader housing and regulatory reforms.

The CLARITY Act also continues to advance, providing a framework for digital assets and stablecoins, while lawmakers have introduced draft legislation aimed at creating a national framework for artificial intelligence. Leadership changes remain a focus as Deputy Assistant Treasury Secretary John Crews moves through the confirmation process to become the next NCUA chairman, and President Trump has nominated former CFPB official Brian Johnson to lead the Consumer Financial Protection Bureau.

Across the Cornerstone region, advocacy momentum continues to build as election activity begins to replace legislative sessions as the primary focus. In Kansas, candidates are preparing for competitive races for governor, U.S. Senate, statewide offices, and all 125 Kansas House seats.

Oklahoma voters selected Kevin Hern as the Republican nominee for U.S. Senate, positioning him as the frontrunner in November, while the Republican gubernatorial primary advanced Gentner Drummond and Mark Mazzei to an August runoff. Voters also rejected State Question 832, which would have gradually increased the state's minimum wage to $15 per hour by 2029. Together, the results reinforce Oklahoma's conservative political landscape heading into the general election.

In Missouri, attention is turning toward budget challenges, ballot measures, and the 2026 election cycle, while credit union advocates continue strengthening relationships through candidate engagement and CUPAC activities.

In Texas, the conclusion of primary runoff elections has shifted attention to candidate meetings and interim legislative studies ahead of the next legislative session.

Meanwhile, Arkansas' House District 44 special election is effectively settled after Bill Teeter secured the Republican nomination and is expected to run unopposed in November.

As campaigns ramp up across the region, Cornerstone's advocacy team will continue engaging with candidates and policymakers to ensure the credit union voice remains part of the conversation and that the movement is well-positioned for the opportunities and challenges ahead.