Expanded Field of Membership Bill Passes House
The bill is considered the most significant update to the Federal Credit Union Act since 1998.
Nearly one month after it was introduced in the U.S. House of Representatives, the Expanding Financial Access for Underserved Communities Act passed the House on Wednesday afternoon and will move on to lawmakers in the Senate for consideration.
The bill, fully supported by CUNA and NAFCU, could become one of the most substantial updates since 1998 to the Federal Credit Union Act by allowing all federal credit unions to include underserved areas to their field of membership – adding areas not within 10 miles of a branch to the definition of an underserved area.
In addition to the expanded Field of Membership, the bill would also exempt business loans made in underserved areas from the member business lending cap.
CUNA President/CEO praised the passage of the bill, introduced by Rep. Maxine Waters (D-Calif.). “This bill will let credit unions do more of what they do best: Promote financial well-being and advance the communities they serve. Thanks to the members who supported this legislation, and we look forward to continued work to keep this much-needed update to the Federal Credit Union Act moving forward,” Nussle said.
In a letter filed Tuesday to leaders of the U.S. House of Representatives, ahead of the vote, NAFCU Vice President of Legislative Affairs Brad Thaler wrote, “Many credit unions want to do more to help underserved areas as banks abandon them and passing this provision to help credit unions fill the void would be a commonsense first step.”
According to research done by CUNA, more than 7,800 bank branches closed between January 2005 and March 2021, leading to more than 750 census tracts being labeled as “financial deserts.” During that same time period, according to CUNA, “credit unions opened more than 1,400 net credit union branches.”