II 

117TH CONGRESS 

2D SESSION S. 4879 

To amend the Federal Credit Union Act to permit credit unions to serve 

certain underserved areas, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 19, 2022 

Mr. PADILLA introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Credit Union Act to permit credit 

unions to serve certain underserved areas, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Expanding Financial 

5 Access for Underserved Communities Act’’. 

6 SEC. 2. CREDIT UNION SERVICE TO UNDERSERVED AREAS. 

7 Section 109 of the Federal Credit Union Act (12 

8 U.S.C. 1759) is amended— 

9 (1) in subsection (c)(2)— 


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1 (A) by striking ‘‘the field of membership 

2 category of which is described in subsection 

3 (b)(2),’’; 

4 (B) by amending subparagraph (A) to read 

5 as follows: 

6 ‘‘(A) the Board determines that the local 

7 community, neighborhood, or rural district is an 

8 underserved area; and’’; and 

9 (C) in subparagraph (B), by inserting ‘‘not 

10 later than 2 years after having such under11 served area added to the credit union’s char12 ter,’’ before ‘‘the credit union’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(h) CHANGE OF FIELD OF MEMBERSHIP TO IN15 CLUDE UNDERSERVED AREAS.— 

16 ‘‘(1) IN GENERAL.—If an existing Federal cred17 it union applies to the Board to alter or expand the 

18 field of membership of the credit union to serve an 

19 underserved area, the credit union shall submit a 

20 business and marketing plan with such application 

21 that explains the ability and intent of the credit 

22 union to serve the population of the underserved 

23 area through the change in field of membership. 

24 ‘‘(2) REPORT BY CREDIT UNION.—Not later 

25 than 2 years after the date on which an application 


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1 described under paragraph (1) is approved, the cred2 it union, as part of the ordinary course of the exam3 ination cycle and supervision process, shall submit a 

4 report to the Administration that includes— 

5 ‘‘(A) an estimate of the number of mem6 bers of the credit union who are members by 

7 reason of the application, including breakdowns 

8 by each State (including the District of Colum9 bia and each territory of the United States), 

10 Tribal government entity, and congressional 

11 district; 

12 ‘‘(B) a description of the types of financial 

13 services utilized by members of the credit union 

14 who are members by reason of the application; 

15 ‘‘(C) an update of the implementation of 

16 the credit union of the business and marketing 

17 plan described under paragraph (1); and 

18 ‘‘(D) a description of the types of financial 

19 education programs made available to members 

20 of the credit union, including those who are 

21 members by reason of the application and those 

22 in rural areas, where applicable.’’. 


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1 SEC. 3. MEMBER BUSINESS LENDING IN UNDERSERVED 

2 AREAS. 

3 Section 107A(c)(1)(B) of the Federal Credit Union 

4 Act (12 U.S.C. 1757a(c)(1)(B)) is amended— 

5 (1) in clause (iv), by striking ‘‘or’’ at the end; 

6 (2) in clause (v), by striking the period and in7 serting ‘‘; or’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(vi) that is made to a member or as10 sociated borrower that lives in or operates 

11 in an underserved area.’’. 

12 SEC. 4. UNDERSERVED AREA DEFINED. 

13 Section 101 of the Federal Credit Union Act (12 

14 U.S.C. 1752) is amended— 

15 (1) in paragraph (8), by striking ‘‘; and’’ and 

16 inserting a period; 

17 (2) in paragraph (9), by striking the period at 

18 the end and inserting ‘‘; and’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(10) the term ‘underserved area’ means a geo21 graphic area consisting of 1 or more population cen22 sus tracts or 1 or more counties, that encompass or 

23 are located within— 

24 ‘‘(A) an investment area, as defined in sec25 tion 103(16) of the Community Development 


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1 Banking and Financial Institutions Act of 1994 

2 (12 U.S.C. 4702(16)); 

3 ‘‘(B) groups of contiguous census tracts in 

4 which at least 85 percent individually qualify as 

5 low-income communities, as defined in section 

6 45D(e) of the Internal Revenue Code of 1986; 

7 or 

8 ‘‘(C) an area that is more than 10 miles, 

9 as measured from each point along the perim10 eter of the area, from the nearest branch of a 

11 depository institution, as defined in section 3 of 

12 the Federal Deposit Insurance Act (12 U.S.C. 

13 1813) or credit union.’’. 

14 SEC. 5. REPORTS BY THE NATIONAL CREDIT UNION ADMIN15 ISTRATION. 

16 (a) INITIAL REPORT.—During the 1-year period be17 ginning on the date that is 2 years after the date of enact18 ment of this Act, the National Credit Union Administra19 tion shall submit to the Committee on Banking, Housing, 

20 and Urban Affairs of the Senate and the Committee on 

21 Financial Services of the House of Representatives a re22 port on the implementation of the amendments made by 

23 this Act. 

24 (b) UPDATE.—On the date that is 5 years after the 

25 date on which the report required under subsection (a) 


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1 is submitted, the National Credit Union Administration 

2 shall submit to the committees described that subsection 

3 an updated report. 

4 SEC. 6. RULE OF CONSTRUCTION. 

5 Nothing in this Act or the amendments made by this 

6 Act may be construed to prevent or otherwise impede the 

7 ability of insured depository institutions, as defined in sec8 tion 3 of the Federal Deposit Insurance Act (12 U.S.C. 

9 1813) to establish branches and provide banking services 

10 in underserved areas. 

Æ 


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