I 

117TH CONGRESS 

2D SESSION H. R. 7003 

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 

MARCH 8, 2022 

Ms. WATERS (for herself and Mr. PERLMUTTER) 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. AMENDMENTS RELATING TO CREDIT UNION SERV7 ICE TO UNDERSERVED AREAS. 

8 Section 109 of the Federal Credit Union Act (12 

9 U.S.C. 1759) is amended— 

10 (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 CREDIT UNION.—Not later 

25 than 2 years after the date on which a Federal credVerDate Sep 11 2014 03:50 Mar 10, 2022 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7003.IH H7003

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1 it union’s application described under paragraph (1) 

2 is approved, the credit union, as part of the ordinary 

3 course of the examination cycle and supervision 

4 process, shall submit a report to the Administration 

5 that includes— 

6 ‘‘(A) an estimate of the number of mem7 bers of the credit union who are members by 

8 reason of the application; 

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

10 services utilized by members of the credit union 

11 who are members by reason of the application; 

12 and 

13 ‘‘(C) an update of the credit union’s imple14 mentation of the business and marketing plan 

15 described under paragraph (1).’’. 

16 SEC. 3. AMENDMENTS RELATED TO MEMBER BUSINESS 

17 LENDING IN UNDERSERVED AREAS. 

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

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

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

21 (2) in clause (v), by striking the period and in22 serting ‘‘; or’’; and 

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


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1 ‘‘(vi) that is made to a member or as2 sociated borrower that lives in or operates 

3 in an underserved area.’’. 

4 SEC. 4. UNDERSERVED AREA DEFINED. 

5 Section 101 of the Federal Credit Union Act (12 

6 U.S.C. 1752) is amended— 

7 (1) in paragraph (8), by striking ‘‘and’’ at the 

8 end; 

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

10 the and inserting ‘‘; and’’; and 

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

12 ‘‘(10) the term ‘underserved area’ means a geo13 graphic area consisting of one or more population 

14 census tracts or one or more counties, that encom15 pass or are located within— 

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

17 section 103(16) of the Community Development 

18 Banking and Financial Institutions Act of 

19 1994; 

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

21 which at least 85 percent individually qualify as 

22 low-income communities, as defined under sec23 tion 45D(e) of the Internal Revenue Code of 

24 1986; or 


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

2 as measured from each point along the area’s 

3 perimeter, from the nearest branch of a deposi4 tory institution (as defined under section 3 of 

5 the Federal Deposit Insurance Act) or credit 

6 union.’’. 

7 SEC. 5. REPORT BY THE NATIONAL CREDIT UNION ADMIN8 ISTRATION. 

9 Not later than 3 years after the date of enactment 

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

11 enactment of this Act, the National Credit Union Adminis12 tration shall issue a report to the Committee on Financial 

13 Services of the House of Representatives and the Com14 mittee on Banking, Housing, and Urban Affairs of the 

15 Senate on the implementation of the amendments made 

16 by this Act. 

Æ 


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