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The NCUA is currently considering whether to appeal the U.S. District Court for the District of Columbia's recent decision to strike down provisions of the agency's field-of-membership (FOM) rule related to rural districts and combined statistical areas. NAFCU continues to support the underlying legality of the NCUA's FOM rule.

The consideration was noted in the NCUA's notice filed with the court Thursday outlining how it will implement the recent decision.

"NAFCU is pleased to see the NCUA is considering an appeal to the court's decision that invalidated portions of its final FOM rule, as we have been staunch advocates of the NCUA's legal authority to modernize credit unions' fields of membership," said NAFCU President and CEO Dan Berger. "Just as NAFCU filed an amicus brief to support the NCUA in the FOM lawsuit, we will continue to support the agency's efforts to keep credit unions competitive."

The notice indicates NCUA has instructed credit unions to not accept any new members who would only be eligible under the vacated portions of the FOM rule. However, credit unions can continue to serve existing members who would have been ruled ineligible by the court's decision, so long as they became members by April 4.

The NCUA argued that if the court's decision meant credit unions could no longer serve existing members, it would "punish individuals and entities who did nothing wrong and who were not parties in this litigation." The agency cited the Federal Credit Union Act's "once a member, always a member" provision and previous practice in its reasoning.

Additionally, while the court’s ruling remains in effect, the agency will not grant new community charters under the invalidated provisions.

The notice also informed the court that the American Bankers Association (ABA), who brought the lawsuit, had been notified of the NCUA's implementation plans and did not intend to challenge it.

In December 2016, the ABA filed suit against the NCUA over its FOM rule, which took effect in February 2017.

NAFCU filed an amicus brief supporting NCUA's FOM rule last June. The association continues to believe the NCUA's FOM rule is well within the agency's legal authority and is in keeping with the Federal Credit Union Act. NAFCU stands behind the NCUA's decision to issue the final rule, which was the first meaningful update to the agency's FOM rules over the past decade.