The House Financial Services Committee voted today to approve the CUNA/League-led H.R 7003, the Expanding Financial Access for Underserved Communities Act, by a 27-22 vote. The bill represents the most significant proposed update to the Federal Credit Union Act since 1998.
“Thank you to all on the committee who supported this important legislation and credit unions’ efforts to promote financial well-being for all,” said CUNA President/CEO Jim Nussle. “This legislation provides a commonsense market-based solution to reach the nearly one in five households that are un- or underbanked across the country.”
Specifically, H.R. 7003 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 New Markets Tax Credit areas and any area that is more than ten miles from the nearest financial institution branch.
Committee Chairwoman Maxine Waters, D-Calif., introduced H.R. 7003 shortly after the 2022 CUNA Governmental Affairs Conference.
According to CUNA research, over 750 census tracts are financial deserts, and a net 7,800+ bank branches closed between January 2005 and March 2021. During the same period, more than 1,400 net credit union branches opened.
CUNA and the Leagues will continue to engage the House to pass this important legislation.