Reps introduce bipartisan Credit Union Board Modernization Act

January 26, 2023

Reps. Juan Vargas, D-Calif., and Bill Huizenga, R-Mich., introduced the CUNA-League-led Credit Union Board Modernization Act. 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 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.”

“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. “By reintroducing this legislation and working toward enactment with growing bipartisan congressional support, Representative Vargas, the bill’s co-sponsors and other members of Congress are making sure credit unions can utilize their time and resources more efficiently and stay committed to their promise of offering quality financial services to members.

“This bill modernizes outdated requirements so that every federally chartered credit union can focus more on member service, especially smaller credit unions serving rural communities and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,” she added. “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.”

“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 (R-MI-4) 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.

“I applaud our MCUL and CUNA advocacy teams for their hard work as well as our Michigan credit union advocates who recognize the importance of meeting and working with our representatives to make change,” she added.

The bill was introduced in conjunction with the 2022 CUNA Governmental Affairs Conference last Congress, and passed the House with more than 100 co-sponsors.