Bill targets Federal Credit Union Act update

U.S. Reps. Juan Vargas (D-CA) and Anthony Gonzalez (R-OH) recently joined 15 colleagues in introducing a measure that seeks to update the Federal Credit Union Act.

© Shutterstock

Vargas and Gonzalez spearheaded the effort to detail the Credit Union Board Modernization Act (H.R. 6889), which modifies the requirement stipulating credit union boards meet once a month to not less than six times annually.

The legislation has received Credit Union National Association (CUNA) support. The California and Ohio Credit Union Leagues worked with Vargas and Gonzalez regarding the bill.

“This common-sense legislation will allow credit unions the flexibility to set their board meeting schedule, freeing up time and resources that can be dedicated to improving their members’ financial well-being and advancing their communities,” CUNA President and CEO Jim Nussle said. “We thank Reps. Vargas and Gonzalez for their bipartisan leadership on this important issue.”

Ohio Credit Union League Chief Advocacy Officer Emily Leite said a modernized Federal Credit Union Act is vital to helping credit unions govern and operate in a 21st-century economy.

“Operational flexibility and empowerment enhance charter-strength and competitiveness so credit unions can meet leadership and members where they are,” she said. “By working together, the Ohio League and CUNA recruited strong bi-partisan congressional leads to achieve common-sense board modernization. Rep. Gonzalez is a supportive House Financial Services Committee voice and connects regularly with movement leaders in his district.”

Leite said Gonzalez’s support indicates it is time for the federal charter to empower elected boards to flexibly lead their credit union and its membership.