WASHINGTON–The Credit Union Board Modernization Act has been reintroduced in Congress.
The legislation, which would revise language in the Federal Credit Union Act related to the requirement that credit union boards meet once a month, has the support of credit unions but failed to pass the previous Congress.
The bill was introduced by Reps. Juan Vargas (D-CA) and Bill Huizenga (R-MI). The legislation was brought about by changes that occurred during COVID when virtual board meetings began taking place. The bill would update the Federal Credit Union Act by modifying the requirement that credit union boards meet once a month to not less than six times per year.
“We thank Representatives Vargas and Huizenga for their leadership in reintroducing the Credit Union Board Modernization Act,” said NAFCU President and CEO Dan Berger. “Ensuring credit unions have every tool necessary to better serve their members and grow their local economies is a priority for NAFCU, and this legislation is a much-needed modernization of an outdated requirement that will provide them with increased flexibility and free up more resources. We urge Congress to enact this bipartisan legislation in a timely fashion."
CUNA Response
“We appreciate the bipartisan leadership by Reps. Vargas and Huizenga in introducing this much needed, commonsense update to the Federal Credit Union Act,” said CUNA President/CEO Jim Nussle. “This bill would give boards greater flexibility to adjust their meetings, while maintaining our focus on safety and soundness, allowing credit unions to dedicate more time and resources to serving their members and communities.”
California League Response
“We are honored to see Congressman Vargas reintroduce the Credit Union Board Modernization Act this year to reshape an antiquated rule and provide federally chartered credit unions and their boards much-needed flexibility to operate in today’s environment,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues. “This bill modernizes outdated requirements so that every federally chartered credit union can focus more on member service, especially smaller credit unions serving rural communities and underserved areas. With today's technology and connectivity, credit union boards are already communicating effectively and adequately. We encourage additional House legislators to help modernize credit unions and support local credit union members by adding their names to this bipartisan legislation.”
Michigan League Response
“The Credit Union Board Modernization Act is a welcome change to our board operations. The current board requirements place an undue burden on credit unions, especially smaller organizations with fewer employees and resources. If passed into law, federal credit unions could spend more time serving the needs of their members and community,” said Michigan Credit Union League CEO Patty Corkery. “We are extremely pleased to have Rep. Bill Huizenga serve as a lead sponsor of the legislation. As a longtime credit union supporter, he understands the importance of removing unnecessary and burdensome requirements on credit unions."
Congressional Committee Assignments
Meanwhile, with Congress back in session, House Democrats continue to work through committee assignments, with pointing Rep. Maxine Waters (D-CA) set to serve as ranking member of the House Financial Services Committee (HFSC). Waters had chaired the committee while the House was under Democratic control in the prior Congress.
Twenty-two other Democrats will serve on the HFSC with Waters, including Rep. Josh Gottheimer (D-NJ).
Details on Democrats’ assignments for some committees can be viewed here.
Rep. Patrick McHenry (R-NC) is now chair of the HFSC; among other things, McHenry has created a new subcommittee focused on digital assets. The full list of Republicans on the HFSC can be found online.
Message Sent in Advance of GAC
Separately, with credit union leaders prepare to visit Capitol Hill next month during CUNA’s Governmental Affairs Conference, the trade group’s new chief advocacy officer, Robert Lewis, has sent a message to all 535 Congressional offices.
“America’s credit unions are focused on helping their member-owners—your constituents—remain stable in challenging times like these. Our focus is on their financial well-being. Credit unions invest in our members with higher returns on savings, lower interest rates on loans, and fewer fees,” Lewis wrote. “Working together, CUNA and state credit union leagues represent America’s credit unions and the 130 million Americans who are members-owners of their credit union. This includes hard-working families and small business owners across your state.”
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