Advocating for Credit Unions: Key Legislative Priorities for the End of 2024

As the 118th Congress approaches its final weeks, America's Credit Unions have outlined key legislative priorities to support and protect the interests of credit unions and their members. In a recent memo to Congressional leaders, President/CEO Jim Nussle emphasized the importance of advancing specific bills and opposing others that could adversely affect the credit union industry. Here's a quick breakdown.

Advocating for Supportive Legislation

America's Credit Unions are urging Congress to pass the following bipartisan bills:

1. Credit Union Board Modernization Act (H.R. 582/S. 610): This legislation proposes updating federal credit union board meeting requirements to a minimum of six meetings per year, providing greater flexibility and efficiency in governance.
2. CDFI Transparency Act (H.R. 2674/S. 3161): Aimed at enhancing oversight, this act would require the Treasury’s Community Development Financial Institutions (CDFI) Fund director to testify before Congress, ensuring transparency and accountability in the allocation of resources to community-focused financial institutions.
3. SAFE Banking Act (H.R. 2891/S. 1323): This bill seeks to provide a safe harbor for financial institutions serving legal cannabis-based businesses, addressing the current legal ambiguities and promoting financial inclusion for these enterprises.

Opposing Potentially Harmful Legislation

In addition to advocating for supportive measures, America's Credit Unions have expressed concerns over certain legislative proposals:

1. Big Box Bailout Bill: This proposed legislation could extend debit interchange routing requirements, potentially harming community financial institutions, including credit unions, by reducing interchange fee income that supports member services.
2. S. 4943: This bill aims to expand Electronic Fund Transfer Act liabilities to financial institutions, which could increase compliance burdens and operational risks for credit unions.
3. Expansion of NCUA Examination Authority: There are efforts to broaden the National Credit Union Administration's examination authority over third-party vendors, which could impose additional regulatory burdens on credit unions.

The Importance of Advocacy

These legislative priorities are crucial for maintaining the operational flexibility and financial health of credit unions. By supporting bills that modernize governance, enhance transparency, and provide safe harbor provisions, credit unions can continue to serve their members effectively. Conversely, opposing legislation that imposes additional burdens or reduces income streams is essential to protect the interests of both credit unions and their members.

CUCollaborate's Commitment

At CUCollaborate, we are dedicated to empowering credit unions through data-driven solutions and strategic guidance. Our expertise in field of membership expansion, compliance, and growth strategies aligns with the advocacy efforts of America's Credit Unions. By staying informed about legislative developments and proactively adapting to changes, we help credit unions navigate the evolving financial landscape and continue to thrive.

For more information on how CUCollaborate can support your credit union's growth and compliance needs, please contact us.

‍