Legislative Update with Jay Kruse

​Expanding Financial Access for Underserved Communities Act introduced in the House – this legislation could expand our mission of “Financial Well-Being For All.” 

Good Morning!

Following the whirlwind that is the CUNA GAC and the recent introduction of the Expanding Financial Access for Underserved Communities Act in the House, (which we will get to in more detail shortly) this will be a quiet week for credit union related legislative activities.

The South Dakota Legislature is in the middle of their second week of recess before they return for one last day of session, and the U.S. House of Representatives is in recess this week as well.

The Senate remains in the national media spotlight this week as the Senate Judiciary Committee begins day three of Supreme Court nominee Ketanji Brown Jackson’s confirmation hearings this morning. The Senate also continues their consideration of H.R. 4521, the America COMPETES Act of 2022, which has passed the House and would in its current form, among many other things, set out financial regulations for cannabis-related businesses and revise other aspects of the financial system. This is a huge bill, over 3,600 pages long, that covers a wide range of topics including financial regulations, scientific research, economic competitiveness, and various other matters. We will continue to keep eye on this legislation as it moves through the Senate.

Also, tomorrow morning, March 24th, the Senate Banking Committee will hold a hearing: “Strengthening Oversight and Equity in the Appraisal Process.” You can tune in here.

H.R. 7003 – Expanding Financial Access for Underserved Communities Act
On the heels of the 2022 CUNA GAC, House Financial Services Committee Chair Rep. Maxine Waters (D-CA) introduced the Expanding Financial Access for Underserved Communities Act, which modernizes the Federal Credit Union Act by making several much-needed updates to credit union field of membership and member business lending requirements. These updates are necessary to enhance credit union’s ability to reach underserved and marginalized communities.

Specifically, the bill would:

• Allow all federal credit unions to add underserved areas to their field of membership.
• Exempt business loans made by credit unions in underserved areas from the credit union member business lending cap.
• Expand the definition of an underserved area to include any area that is more than 10 miles from the nearest branch of a financial institution.

​This legislation would play a key role in our mission of improving “Financial Well-Being For All” by making it easier for credit unions to help eliminate banking deserts and predatory financial practices by introducing a not-for-profit banking alternative in these underserved communities. While we are excited about the introduction of this legislative, this is only the beginning. Along with Rep. Waters, the bill has just one cosponsor so far in Rep. Ed Perlmutter, a Colorado democrat. We will continue to support and advocate for this legislation as it moves through the legislative process and will be sure to keep you informed along the way. Also, be sure to check out our Financial Well Being For All page for more information and helpful resources. 

As always, if you have any questions about these or any other association or advocacy related topics, please don’t hesitate to contact me.
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