A long-sought advocacy priority for the credit union movement officially became law this weekend. The Credit Union Board Modernization Act, included as part of the broader 21st Century Renewing Opportunity in the American Dream (ROAD) to Housing Act, took effect at midnight on Saturday after President Trump declined to either sign or veto the legislation.

What This Means for Federal Credit Unions

The headline change is board meeting flexibility. Federal credit union boards are no longer required to meet once every month. Under the new law, boards have the flexibility to meet at least six times per year with at least one meeting per quarter, allowing credit unions to structure their governance in a way that best serves their members and respects the time of their volunteer leaders.

The reduced meeting schedule is available only to federal credit unions with:

• A composite rating of 1 or 2; and
• A management rating of 1 or 2 (under UFIRS or an equivalent system).

Monthly meetings remain required for:

• De novo federal credit unions (in existence for five or fewer years);
• FCUs with a composite rating of 3, 4, or 5; or
• FCUs with a management rating of 3, 4, or 5 under the UFIRS or equivalent system

What Else Is in the Package

The housing package includes two additional provisions of interest to credit unions:

• The Mentor-Protégé Program for Small Financial Institutions Act empowers minority depository institutions and smaller credit unions to collaborate with larger credit unions through formal mentorship efforts.
• The American Access to Banking Act streamlines the federal application process, promoting the formation of new, or de novo, credit unions and other community financial institutions.

Thank You for Your Advocacy & Support

This achievement reflects years of sustained, unified advocacy from credit unions, state leagues & associations, and America’s Credit Unions. This is a clear example of what our movement can accomplish when credit unions speak with one voice. Thank you to all advocates who helped carry this priority across the finish line.

We extend our sincere thanks to the sponsors of this legislation and to all the lawmakers who supported it. We are especially grateful to the members of the New York delegation who stood with credit unions throughout this effort: Representatives Nydia Velázquez, Andrew Garbarino, Ritchie Torres, and Mike Lawler, and Senators Chuck Schumer and Kirsten Gillibrand.