Newsroom

Sen. Alex Padilla, D-Calif., yesterday introduced the Expanding Financial Access for Underserved Communities Act, a companion bill to the House version introduced in March by House Financial Services Committee Chairwoman Maxine Waters, D-Calif.

This legislation would allow all types of credit unions to expand their field of membership into underserved areas, while also broadening the definition of “underserved area” to include anywhere not within ten miles of the nearest financial institution. The bill also exempts any business loan made to business in an underserved area from the credit union member business lending cap. 

NAFCU has regularly advocated for field of membership reform. The association wrote to House leadership in June to express support for the Expanding Financial Access for Underserved Communities Act. In August 2021, NAFCU wrote to the NCUA for their 2022 regulatory review. In that letter, the association urged the NCUA to reform certain field of membership regulations. NAFCU also published an issue brief detailing further endorsement for modernization of field of membership.

Additionally, NAFCU President and CEO Dan Berger wrote an op-ed discussing the soaring closure rate of big bank branches across the country and its disproportionate impact on underserved, rural communities who need access to safe, affordable financial services and products the most.

NAFCU will track this bill and provide updates through NAFCU Today.