Washington D.C. – U.S. Senator Katie Britt (R-Ala.) has joined fellow Senate Banking Committee members Senator Bill Hagerty (R-Tenn.) and Senator Lisa Blunt Rochester (D-Del.) in introducing the Credit Union Board Modernization Act, a bipartisan bill aimed at updating long-standing federal regulations that govern credit unions.
The legislation seeks to revise a decades-old requirement mandating that credit union boards meet in person each month. Supporters of the bill argue that the rule has become outdated in the era of modern communication technologies, placing unnecessary burdens on credit unions—particularly those serving rural and underserved communities.
Senator Britt emphasized the impact of these regulations on Alabama’s credit unions, highlighting the institutions’ role in supporting families, small businesses, and underserved populations.
“These institutions play a vital role in supporting Main Street communities across Alabama… and unnecessary red tape ultimately stifles their work,” Britt said. “I’m proud to join my colleagues in this bipartisan, commonsense effort.”
Senator Hagerty, who authored the bill, noted that the legislation aims to reduce what he described as regulatory micromanagement, allowing credit unions to concentrate on delivering financial services rather than complying with rigid meeting schedules.
“Credit unions should be allowed to spend less time in unnecessary board meetings and more time serving their members,” said Hagerty.
Senator Blunt Rochester added that modernizing these requirements could significantly benefit smaller and rural credit unions in her home state and beyond.
“It is far past time that the arcane requirements for credit unions are removed,” said Blunt Rochester.
The legislation builds on previous efforts from the 118th Congress, where Senator Britt served as a cosponsor. In recognition of her support for credit unions, she was named the League of Southeastern Credit Unions’ 2023 Federal Lawmaker of the Year for Alabama.
Britt has consistently voiced support for local financial institutions. During a recent Senate Banking Committee hearing examining the practice of debanking, she spoke about the importance of community banks and credit unions as essential providers of relationship-based banking services.
Senator Britt stated, “I am grateful for our community banks and credit unions in Alabama that serve our local communities and give people access to the American Dream.”
The Credit Union Board Modernization Act continues to garner bipartisan support as lawmakers seek to ease regulatory burdens and enhance the operational flexibility of credit unions across the country.
