Testifying at the House Financial Services Committee (from left to right): Patrick J. Kennedy, Jr., Founding Partner, Kennedy Sutherland LLP; Susannah Marshall, Bank Commissioner, Arkansas State Bank Department; Cathy Owen, Executive Chairman, Eagle Bank & Trust Company; Rebecca Romero Rainey, President and CEO, Independent Community Bankers of America; Mitria Spotser, Vice President, Federal Policy, Center for Responsible Lending.
For more than three hours Wednesday, House Financial Services Committee members listened to testimony from five community banking and lending experts for its “Make Community Banking Great Again” hearing. It was the first such hearing held by the Committee during this term of the Trump Administration.
Of those testifying, four represented community banks, one represented the Center for Responsible Lending. Missing from the group was credit union representation.
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While leaders of America’s Credit Unions and the Defense Credit Union Council (DCUC) raised their objections before the hearing that they weren’t invited to testify, it might be for the best as lawmakers appeared to be more focused on either dismantling the CFPB or saving the Bureau from extinction.
There were no mentions of taxing credit unions or any such larger threats to the financial cooperative system coming from the community bank or legislative leaders.
The significant news for credit unions came from two Committee members: Reps. Juan Vargas (D-Calif.) and Bill Huizenga (R-Mich.).
Reps. Vargas and Huizenga reintroduced the Credit Union Board Modernization Act, which would allow greater flexibility in board meeting requirements, reducing operational burdens while maintaining strong governance. A similar bill passed the House twice in the past two years, but failed to come to a vote in the Senate.
As in previous versions, this bill would amend the Federal Credit Union Act to allow federal credit union boards to meet every other month instead of monthly.
“It’s time to change this outdated requirement to allow credit unions more flexibility,” Rep. Vargas said. “This legislation will help credit unions dedicate more time and resources to their true mission – providing quality financial services to our communities. Thanks to my colleague, Congressman Huizenga, for leading this effort with me.”
Credit union leaders said they believe this version will similarly pass the House.
“We expect the full House to pass this legislation on the suspension calendar next week and strongly encourage every member of the House to vote for its passage,” DCUC Chief Advocacy Officer Jason Stverak said in a prepared statement.
Several statements from credit union officials praised the bill’s reintroduction.
“America’s Credit Unions supports any legislation that modernizes credit unions’ operations. We thank Representatives Bill Huizenga and Juan Vargas for their reintroduction of the bipartisan Credit Unions Board Modernization Act that will provide increased flexibility and free up more resources to better serve their members and community at large,” America’s Credit Unions Chief Advocacy Officer Carrie Hunt said.
“We applaud Congressman Vargas for reintroducing the Credit Union Board Modernization Act, giving federally chartered credit unions greater flexibility,” Scott Simpson, president/CEO of the California and Nevada Credit Union Leagues said. “This bipartisan effort helps credit unions better serve their members, especially in rural and underserved areas. We encourage more House members to support this legislation.”
"The reintroduction of the Credit Union Board Modernization Act is significant for credit unions and their members,” Michigan Credit Union League President/CEO Patty Corkery said. “By reducing unnecessary regulatory burdens, this common-sense legislation will empower credit unions to dedicate more time and resources to serving their communities,”
Corkery added, “We're pleased to see this progress, which is a testament to the collaborative relationship credit unions have built with many of our lawmakers.”
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
