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Continuing the momentum built by NAFCU’s advocacy last session, the House Monday passed the Credit Union Board Modernization Act (CUBMA), which reduces the minimum number of monthly meetings credit union boards are required to hold from 12 to six. The legislation now heads to the Senate for consideration.

“The House’s swift passage of the Credit Union Board Modernization Act is a testament to the credit union industry’s commitment to their members,” said NAFCU President and CEO Dan Berger. “NAFCU and our member credit unions fought to make lawmakers aware of outdated requirements that can be costly and impact the ability to serve members. Reducing the number of required annual meetings and recognizing the need for modernization in the Federal Credit Union Act will allow credit unions to better utilize resources and focus their efforts on serving their 134 million members and the underserved communities in need of safe, affordable financial products and services.

“We thank Representatives Vargas and Huizenga for their leadership on this issue and we urge the Senate to follow the House’s lead and pass this legislation without delay.”

The bill was reintroduced last week by Reps. Juan Vargas, D-Calif., and Bill Huizenga, R-Mich. It passed the House Monday by a voice vote under suspension of the rules – demonstrating the broad bipartisan support this issue has in Congress.

Ahead of House action, NAFCU joined with the Defense Credit Union Council (DCUC) and CUNA to send a letter to House Speaker Kevin McCarthy, R-Calif., and House Minority Leader Hakeem Jeffries, D-N.Y., as well as House Financial Services Committee Chairman Patrick McHenry, R-N.C., and Ranking Member Maxine Waters, D-Calif., highlighting the benefits of the legislation.

“To incentivize good governance at credit unions and promote safety and soundness of the overall system, we also support exemptions made in the legislation for credit unions with a low CAMELS composite rating, credit unions with a low management component rating and de novo credit unions as they stabilize operations,” the groups wrote.

NAFCU will continue its advocacy on this issue to secure passage in the Senate.