Credit Union Board Modernization Act
Sponsor
Juan Vargas
Democrat · CA-52
Latest Action · Feb 11, 2025
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Bill Progress
Congress eases credit union board meetings
Why it matters
This could save credit unions time and money while keeping oversight on track.
The big picture: The Credit Union Board Modernization Act aims to give well-run credit unions more flexibility, letting their boards meet only six times a year instead of monthly. That's a significant break for credit unions with strong financial health, freeing up leadership time and resources for serving members.
Zoom in: Credit unions that just started out (de novo) or those with lower financial ratings will still need to meet monthly. This keeps closer oversight on institutions that need more attention, while rewarding higher performers with fewer required meetings. For most established and well-rated credit unions, this could mean less paperwork and easier scheduling.
Between the lines: Supporters say this shows trust in credit unions' management and adapts rules to fit the modern financial world. But the rules ensure that struggling institutions don’t slip through the cracks, guarding against risk. The change is bipartisan and welcomed by many in the credit union community, but regulators will still keep a close watch on how this affects member safety and credit union stability.
What This Bill Does
Reduces board meeting frequency for strong credit unions
Well-rated credit unions only need to have board meetings six times a year, with at least one per quarter.
Monthly meetings still required for new credit unions
Credit unions in their first five years must keep meeting monthly for closer monitoring.
Strict oversight for weak credit unions
Any credit union with poor financial or management ratings must continue monthly board meetings.
Links rules to national ratings
Board meeting frequency is tied to how the credit union performs in standardized safety and management ratings.
Adapts Federal Credit Union Act
Updates existing 1930s-era law to fit today's financial landscape and risk profiles.
Who Benefits
Well-managed credit unions
They'll get more flexibility and less red tape if their finances and management are in good shape.
Credit union board members
They'll spend less time in mandatory meetings and more time focusing on serving their members.
Credit union members
Better-run credit unions can reallocate time and resources toward member services.
Regulators
They can direct attention to riskier institutions without wasting effort on strong performers.
Who's Affected
New credit unions
They must still meet monthly, ensuring they get extra oversight.
Credit unions with poor ratings
They have to stick to monthly meetings due to their higher risk.
Low-rated management teams
They remain under tighter meeting requirements until they improve.
Credit union boards used to monthly meetings
They'll need to adapt their routines and compliance systems to the new schedule.
Cosponsors (22)
Bill Huizenga
Republican · MI
Sean Casten
Democrat · IL
Hillary Scholten
Democrat · MI
Warren Davidson
Republican · OH
Daniel Meuser
Republican · PA
Bill Foster
Democrat · IL
Young Kim
Republican · CA
Darrell Issa
Republican · CA
Russ Fulcher
Republican · ID
Salud Carbajal
Democrat · CA
Gregory Meeks
Democrat · NY
H. Griffith
Republican · VA
Recent Actions
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H601-602)
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H601-602)
DEBATE - The House proceeded with forty minutes of debate on H.R. 975.
Considered under suspension of the rules. (consideration: CR H601-603)
Mr. Hill (AR) moved to suspend the rules and pass the bill.
Referred to the House Committee on Financial Services.
Committees (2)
Banking, Housing, and Urban Affairs Committee
Senate · Standing
Referred To · Feb 11, 2025
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Full Bill Text
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Source: Congress.gov
