A needed modernization to lift limits on investment options for credit unions was recently introduced in the U.S. House of Representatives.

The bipartisan Credit Union Investment Authority Act, introduced by Reps. Young Kim (R-CA) and Janelle Bynum (D-OR), updates the Federal Credit Union Act to offer flexibility on diversifying investments, providing federal credit unions parity with banks and other institutions that can already invest in a broader range of options.

Federal credit unions need updated laws to safely navigate today’s financial landscape and keep providing affordable products to members. California’s and Nevada’s Credit Unions, as well as America’s Credit Unions, would like to thank Kim for introducing the Credit Union Investment Authority Act to address outdated investment limits.

Modernizing the Federal Credit Union Act will grant credit unions the investment flexibility needed to diversify portfolios, manage balance sheets, and maintain sound, low-cost services. The California and Nevada leagues will continue advocating for modern regulatory frameworks and urge Congress to pass this bill.

“For generations, federally chartered credit unions have served their members and adapted to meet the needs of their communities,” said Stephanie Cuevas, senior vice president of federal advocacy for California’s and Nevada’s Credit Unions. “However, as the financial services industry modernized, some regulatory flexibility remained out of reach for credit unions, such as investment authorities. We are grateful to Rep. Kim for developing a bill that will provide a new tool for credit unions to invest funds and generate greater value for members.”