WASHINGTON–The House has passed legislation that would ease expansion of credit union field of membership into underserved areas. Separately, CULAC is reporting that 15 of the candidates it supported in this week’s primaries won their races.
In the House, the credit union-supported Expanding Financial Access for Underserved Communities Act was passed as part of a larger financial services bill (H.R. 2543).
The legislation, described by CUNA as the "most significant update to the Federal Credit Union Act since 1998," would:
- Allow all federal credit unions to add underserved areas to their field of membership
- Exempt business loans made in underserved areas from the member business lending cap
- Expand the definition of an underserved area to include New Markets Tax Credit areas and any area that is more than ten miles from the nearest financial institution branch
According to CUNA research, more than 750 census tracts are financial deserts, and a net 7,800+ bank branches closed between January 2005 and March 2021. Credit unions opened more than 1,400 net credit union branches over the same time period.
‘Do What CUs Do Best’
“This bill will let credit unions do more of what they do best: promote financial well-being and advance the communities they serve,” said CUNA President/CEO Jim Nussle. “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.”
The legislation was introduced shortly after CUNA held its GAC in Washington earlier this year House Financial Services Committee Chairwoman Maxine Waters (D-CA).
How CU-Backed Candidates Fared
Meanwhile, the Credit Union Legislative Action Network (CULAC) is reporting that 15 of the candidates it supported in this week’s primaries won their races, although one candidate who had CU backing lost.
The CUNA/league PAC said it has had a 98% success rate in backing the 180 candidates to whom it has made donations to date in the current cycle.
Races took place this week in Maine, Nevada, South Carolina, and North Dakota.
Among the five candidates CULAC specifically cited as receiving support this week:
- Rep. Dina Titus (D-NV), who faced a tough primary against Amy Vilela in the 1st District.
- Rep. Mark Amodei (R-NV), who defeated Douglas County Commissioner Danny Tarkanian.
- Rep. Susie Lee (D-NV), a Democrat who ran in the newly drawn 3rd District. CULAC noted that Lee was one of the 21 Democratic House members who wrote a letter to House Democratic leadership in opposition to expanded Internal Revenue Service reporting requirements.
- Rep. Nancy Mace (R-SC), who defeated Katie Arrington.
- Rep. Tom Rice (R-SC), who had voted to impeach President Trump following the Jan. 6 capital riots, was defeated by State Rep. Russell Fry.
Other Races
CULAC noted it also partnered with the Maine Credit Union League and the Dakota Credit Union Association to support three successful candidates across Maine and North Dakota.