WASHINGTON–The credit union trade groups said they are watching new legislation introduced in the Senate to ensure it does not include language that would require credit unions to comply with provisions of the Community Reinvestment Act (CRA).

The inclusion of CRA compliance language for credit unions has been an issue in Congress for the last few years, with the banking industry actively lobbying in favor. It was eventually removed in conference committee meetings.

The trade groups are now eyeing the American Housing and Economic Mobility Act, whose co-sponsors say the legislation seeks to leverage federal funding to build nearly three million new housing units, bring down rents by 10% for American families, and create incentives for local governments to eliminate unnecessary land use restrictions that drive up costs. 

The bill was introduced by Sen. Elizabeth Warren (D-MA), the ranking member of the Senate Banking, Housing and Urban Affairs Committee, Sen. Raphael Warnock (D-GA), and Rep. Emanuel Cleaver (D-Miss.), Ranking Member of the Financial Services Subcommittee on Housing and Insurance.

‘Undermines’ Access

“Expanding Community Reinvestment Act (CRA) like provisions to credit unions, as proposed in Section 204 of the American Housing and Economic Mobility Act of 2025, threatens to undermine financial access for vulnerable populations, including military and veteran communities,” said Jason Stverak, chief advocacy officer with the Defense Credit Union Council. “Credit unions, which already prioritize financial inclusion as not-for-profit, member-owned institutions, were deliberately excluded from CRA requirements because they do not engage in the profit-driven practices the law was designed to regulate. Imposing redundant, costly regulations on credit unions will stifle their ability to serve underserved areas, drive up costs for members, and create bureaucratic obstacles that hinder financial expansion. 

A Better Focus

“Rather than burdening credit unions with unnecessary oversight, Congress should focus on reducing barriers to their growth, ensuring that military families and veterans continue to have access to affordable financial services…” Stverak continued in a statement. “At the same time, we recognize the need to address the affordable housing crisis and are actively engaging Congress to bring solutions that prioritize consumer protection, effective regulation, and improved housing supply. We strongly support Section 206, which aims to help veterans secure stable housing, and we are committed to working with the bill’s sponsors to improve and strengthen this legislation.”