Big News: CUBMA Is Now the Law of the Land
Remember that Credit Union Board Modernization Act everyone’s been talking about? Well, it’s officially law now—no signature required. The President let the 10-day window expire at midnight Friday, which means the legislation automatically kicked in. It’s like when you don’t respond to that group text and everyone just assumes you’re in.
Packaged alongside the 21st Century ROAD to Housing Act, CUBMA delivers the regulatory relief credit unions have been pushing for. Translation: credit union boards just got some much-needed flexibility to actually do their jobs without jumping through unnecessary hoops.
Scott Simpson, President and CEO of America’s Credit Unions, didn’t hold back the gratitude: “America’s Credit Unions, our League partners, and credit unions nationwide have been steadfast in their commitment to advancing the Credit Union Board Modernization Act. Through strong relationships with congressional champions and relentless, unified advocacy, we built the broad bipartisan support necessary to carry this legislation forward.”
He continued, “We extend our sincere gratitude to the Senate Banking and House Financial Services Committees’ members, who led efforts on this housing package. Meaningful policy progress requires sustained effort and thoughtful dialogue, and we appreciate the commitment from the Trump Administration and lawmakers who heed the needs of the American public and push forward practical, common-sense solutions.”
What’s Happening on Capitol Hill This Week
Senate Schedule Up in the Air
The Senate’s calendar just got a major asterisk. Following the sudden passing of Senator Lindsey Graham, expect some schedule reshuffling as the chamber adjusts.
The NDAA Saga Continues
The National Defense Authorization Act is still in negotiation limbo. Both chambers have their own versions ready to go, but whether either has the votes to pass this week? That’s anyone’s guess.
The House tried to move forward before recess but hit a wall—they couldn’t even pass the rule to bring the NDAA to the floor. On the bright side for credit unions, no financial services amendments that would mess with credit union operations made it into the House version.
Over in the Senate, things are slightly more chaotic. Hundreds of amendments have been filed, and America’s Credit Unions has already weighed in on the ones that matter most. Senate leadership is working behind the scenes this week to figure out which amendments actually make the cut.
NCUA Nominee Moving Forward
John Crews, nominated for the NCUA board, should face a Senate Banking Committee vote before the month wraps up. America’s Credit Unions submitted a letter ahead of his June 25 testimony, and Senate Majority Leader John Thune has made it clear that confirming nominees before the August recess is a top priority. Let’s see if they can stick the landing.
Legislation to Watch
CLARITY Act: After clearing the Senate Banking Committee, this one could hit the Senate floor before everyone heads out for August recess. We’ll keep you posted on any movement.
Common Cents Act: The House is expected to take up an updated version soon on its suspension calendar. America’s Credit Unions backs this bill, which addresses practical questions about discontinuing the penny. Because yes, someone has to figure out what happens when we finally say goodbye to Lincoln’s copper profile.
Hearings Worth Your Attention
It’s a packed week on the hearing circuit.
- Tuesday: House Small Business dives into AI’s impact on Main Street businesses
- Tuesday: House Financial Services gets the Federal Reserve’s semi-annual monetary policy report
- Tuesday: House Appropriations holds an oversight hearing on the Small Business Administration
- Wednesday: House Financial Services hears from the Consumer Financial Protection Bureau on its semi-annual report
- Wednesday: Senate Banking examines the Fed’s semi-annual monetary policy report
Regulatory Updates You Should Know About
Standing Up for Federal Preemption
America’s Credit Unions just sent a joint comment letter to the NCUA—alongside the Illinois Credit Union League, ABA, and Illinois Bankers Association—supporting the agency’s interim final rule on non-interest charges and fees. The rule preempts state laws that would interfere with federal credit unions’ ability to charge fees, particularly interchange fees.
Why does this matter? Because a patchwork of conflicting state laws would turn the payments system into a confusing mess for consumers and financial institutions alike. Scott Simpson and Libby Calderone (President/CEO of Illinois Credit Union League) previously spelled it out: “Americans rely on the electronic payments system every day for its stability and predictability. The Illinois law, driven by mega-retailers, would disrupt that system, create confusion for millions of consumers, and encroach on federal law.”
They added, “We appreciate Chairman Hauptman and the NCUA for their leadership in preventing a patchwork of state laws by reaffirming that credit unions are exempt from state regulations affecting non-interest charges and fees, including interchange fee prohibitions.”