WASHINGTON —In advance of a congressional hearing today, America’s Credit Unions called on House lawmakers to ease lending and investment restrictions on credit unions and support the Community Development Financial Institutions Fund, arguing that regulatory modernization would allow credit unions to expand access to affordable financial services and small-business credit.
In a Sept. 1 letter to House Financial Services Committee Chairman French Hill (R-AR) and ranking member Maxine Waters (D-CA), the trade group outlined its priorities ahead of the committee’s Sept. 2 hearing, “Strengthening the American Economy: Promoting Growth, Opportunity, and Prosperity.”
America’s Credit Unions, which represents credit unions serving more than 146 million members, said credit unions generated $41.5 billion in economic benefits for consumers in 2025.
The group also praised the committee for advancing legislation it said would reduce regulatory burdens and combat payments fraud.
Group Points to Branch Growth, Lower Loan Rates
America’s Credit Unions said credit unions have continued expanding physical access to financial services while banks have reduced their branch networks.
From 2012 through 2025, banks closed a net 20,791 branches while credit unions opened a net 747 branches, according to the trade group’s analysis of Federal Deposit Insurance Corp. and National Credit Union Administration data.
The group also cited a 2025 study that found credit union mortgage rates were 7% lower and auto loan rates were 32% lower than alternatives examined in the research, producing an estimated $16 billion in annual consumer savings.
A family financing a vehicle through a credit union rather than a traditional auto lender could save $9,983 over the life of the loan, America’s Credit Unions said.
Credit unions also provide financing to more than 2.5 million small businesses, according to the letter. Credit union commercial loan balances increased 10.9% during the 12 months ending in December 2025 to $192.9 billion, based on NCUA Call Report data cited by the organization.
Lending, Investment Changes Sought
America’s Credit Unions called on lawmakers to support several bills it said would modernize restrictions contained in the Federal Credit Union Act:
- H.R. 4167, the Expanding Access to Lending Options Act: The bipartisan legislation would allow the NCUA Board to establish longer maturities for certain loans. Federal credit unions generally face a 15-year maturity limit on loans other than primary mortgages, which the trade group said restricts their ability to offer products members want.
- H.R. 7647, the MORE Opportunities for Homeownership Act: The legislation would include credit unions in the Federal Home Loan Bank Act’s definition of a community financial institution, potentially making it easier for smaller credit unions to obtain Federal Home Loan Bank membership and access capital.
- H.R. 10082, the Credit Union Investment Authority Act: The measure would allow federal credit unions to invest in corporate debt and asset-backed securities. America’s Credit Unions said federal credit unions currently have fewer investment options than some other financial institutions, including some state-chartered credit unions.
- H.R. 1791, the Increasing Credit Union Lending for Business Growth Act: The bipartisan bill would increase from $50,000 to $100,000 the loan threshold used in determining what counts toward the statutory member business lending cap. The existing $50,000 threshold has not been updated since 1998.
- H.R. 507, the Veterans Member Business Loan Act: The bipartisan measure would exempt loans to veteran-owned small businesses from the credit union member business lending cap.
America’s Credit Unions said the business-lending restrictions are particularly outdated because inflation has significantly eroded the value of the $50,000 threshold since Congress established the cap in 1998.
Group Praises Fraud, Reporting Bills
The organization also praised the committee for advancing H.R. 1799, the Financial Reporting Threshold Modernization Act.
The bill would increase the threshold for filing currency transaction reports to $30,000 from $10,000 and the suspicious activity report threshold to $10,000 from $5,000. The thresholds would subsequently be adjusted for inflation.
America’s Credit Unions also endorsed H.R. 9331, the STOP Payments Fraud Act of 2026, which the group said would give credit unions greater flexibility to stop suspected fraudulent payments.
Among other provisions, the legislation would:
- Provide greater flexibility in funds-availability schedules.
- Explicitly permit payment holds when fraud is suspected.
- Permit holds on wire transfers.
The trade group also praised congressional passage of the Credit Union Board Modernization Act as part of the 21st Century ROAD to Housing Act.
CDFI Fund Support Urged
America’s Credit Unions also called for continued support for the CDFI Fund, describing it as an important source of capital and technical assistance for financial institutions serving underserved communities.
Credit unions account for 446 of the nation’s 1,383 certified CDFIs, making them the largest type of depository institution holding the designation, according to the letter.
Those credit union CDFIs serve more than 19 million people through more than 2,800 branches nationwide, America’s Credit Unions said.
The organization said CDFI funding supports affordable housing, homeownership, small-business growth, job creation and consumer financial security.
America’s Credit Unions told lawmakers that further modernization of federal credit union laws would allow the institutions to expand those efforts.
“By providing affordable financial services products to their members, credit unions are an economic catalyst for their members and strengthen the U.S. economy,” the organization said.
