I 

118TH CONGRESS 

2D SESSION H. R. 10511 

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

certain underserved areas, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 18, 2024 

Ms. WATERS introduced the following bill; which was referred to the 

Committee on Financial Services 

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 credit union’s ability and intent to 

22 serve the population of the underserved area through 

23 the change in field of membership. 

24 ‘‘(2) REPORT BY SMALLER CREDIT UNIONS.— 

25 Not later than 2 years after the date on which a 


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1 Federal credit union with $10,000,000,000 or less in 

2 assets has an application described under paragraph 

3 (1) approved, the credit union, as part of the ordi4 nary course of the examination cycle and supervision 

5 process, shall submit a report to the Administration 

6 that includes— 

7 ‘‘(A) an estimate of the number of mem8 bers of the credit union who are members by 

9 reason of the application; 

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

11 services utilized by members of the credit union 

12 who are members by reason of the application; 

13 and 

14 ‘‘(C) an update of the credit union’s imple15 mentation of the plan described under para16 graph (1). 

17 ‘‘(3) ADDITIONAL REQUIREMENTS FOR LARGE

18 CREDIT UNIONS.—With respect to a Federal credit 

19 union with more than $10,000,000,000 in assets: 

20 ‘‘(A) CONSUMER ADVISORY PANEL.—If an 

21 application described under paragraph (1) is 

22 approved, the Federal credit union shall— 

23 ‘‘(i) establish a consumer advisory 

24 panel that is representative of the popu25 lation of the underserved area; and 


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1 ‘‘(ii) consult with the consumer advi2 sory panel at least once every 6 months on 

3 how the credit union can best serve the 

4 convenience and needs of the population of 

5 the underserved area. 

6 ‘‘(B) PLAN CONTENTS.—A plan required 

7 to be submitted under paragraph (1) shall also 

8 include— 

9 ‘‘(i) a compliance plan that explains 

10 how the credit union’s ability and intent to 

11 serve the population of the underserved 

12 area through the change in field of mem13 bership will be done in compliance with all 

14 applicable laws and regulations, including 

15 the credit union’s ability to comply with all 

16 applicable anti-discrimination and fair 

17 lending requirements; and 

18 ‘‘(ii) a plan to establish a consumer 

19 advisory panel described under subpara20 graph (A). 

21 ‘‘(C) APPROVAL REQUIREMENTS.—Before 

22 approving an application described under para23 graph (1), the Board shall— 


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1 ‘‘(i) consult with the Director of the 

2 Bureau of Consumer Financial Protection; 

3 and 

4 ‘‘(ii) take into account the Federal 

5 credit union’s compliance with consumer fi6 nancial protection laws. 

7 ‘‘(D) ONGOING REPORTING.—Not later 

8 than 2 years after the date on which the Fed9 eral credit union has an application described 

10 under paragraph (1) approved, and every 2 

11 years thereafter, the Federal credit union shall, 

12 as part of the ordinary course of the examina13 tion cycle and supervision process, submit a re14 port to the Administration that includes— 

15 ‘‘(i) an estimate of the number of 

16 members of the credit union who are mem17 bers by reason of the application; 

18 ‘‘(ii) a description of the types of fi19 nancial services utilized by members of the 

20 credit union who are members by reason of 

21 the application; 

22 ‘‘(iii) an update of the credit union’s 

23 implementation of the plan described under 

24 paragraph (1), including the contents de25 scribed under subparagraph (B)(i); and 


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1 ‘‘(iv) a description of how the credit 

2 union has addressed issues identified by 

3 the consumer advisory panel.’’. 

4 SEC. 3. MEMBER BUSINESS LENDING IN UNDERSERVED 

5 AREAS. 

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

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

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

9 (2) in clause (v), by striking the period and in10 serting ‘‘; or’’; and 

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

12 ‘‘(vi) that is made to a member or as13 sociated borrower that lives in or operates 

14 in an underserved area.’’. 

15 SEC. 4. UNDERSERVED AREA DEFINED. 

16 Section 101 of the Federal Credit Union Act (12 

17 U.S.C. 1752) is amended— 

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

19 inserting a period; 

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

21 the end and inserting ‘‘; and’’; and 

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

23 ‘‘(10) The term ‘underserved area’ means a ge24 ographic area consisting of one or more population 


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1 census tracts or one or more counties, that encom2 pass or are located within— 

3 ‘‘(A) an investment area, as defined under 

4 section 103(16) of the Community Development 

5 Banking and Financial Institutions Act of 

6 1994; 

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

8 which at least 85 percent individually qualify as 

9 low-income communities, as defined under sec10 tion 45D(e) of the Internal Revenue Code of 

11 1986; or 

12 ‘‘(C) an area that is more than ten miles, 

13 as measured from each point along the area’s 

14 perimeter, from the nearest branch of a deposi15 tory institution (as defined under section 3 of 

16 the Federal Deposit Insurance Act) or credit 

17 union.’’. 

18 SEC. 5. REPORTS BY THE NATIONAL CREDIT UNION ADMIN19 ISTRATION. 

20 Not later than 3 years after the date of enactment 

21 of this Act, but no sooner than 2 years after the date of 

22 enactment of this Act, and every 2 years thereafter, the 

23 National Credit Union Administration shall issue a report 

24 to the Committee on Financial Services of the House of 

25 Representatives and the Committee on Banking, Housing, 


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1 and Urban Affairs of the Senate on the implementation 

2 of the amendments made by this Act. 

Æ 


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