The National Credit Union Administration (NCUA) board met on April 9 and covered several topics, including new guidance on brokered and reciprocal deposits, the agency’s ongoing deregulation efforts, and its strategic and performance planning for the years ahead.
The board received an update on newly issued FAQs addressing brokered and reciprocal deposits. The guidance is intended to provide greater clarity for federally insured credit unions, confirming that participation in these deposit networks is permissible.
At the same time, NCUA emphasized that while these tools can offer benefits—such as liquidity management and balance sheet flexibility—credit unions should carefully evaluate how they fit within their overall funding strategies. Overreliance could elevate risk profiles and potentially impact supervisory ratings, reinforcing the importance of a balanced approach.
NCUA also provided an update on its ongoing Deregulation Project, which has been a significant focus since its launch in December 2025. To date, the agency has issued 29 proposed rules and received more than 230 public comments—most of them supportive.
Importantly, NCUA staff indicated that Phase 1 of the project remains ongoing. This phase is focused on identifying regulations that are obsolete, overly burdensome, duplicative of statute, or more appropriate as guidance. The timeline has been extended in part as the agency works through new legislation and executive orders shaping its review process and aligning with Administration priorities. At this time, NCUA does not have a clear timeline for when Phase 2 or subsequent phases will begin, nor what those future phases may entail.
Instead, the current focus remains on reviewing public comments, refining proposals, and moving toward final rulemakings. Based on the discussion, credit unions should expect Phase 1 to continue through at least the end of 2026, and potentially into early 2027.
California’s Credit Unions and Nevada’s Credit Unions have been actively engaged throughout this process and have submitted multiple comment letters on various proposals under the Deregulation Project, advocating for practical, risk-based reforms that reduce unnecessary burden while preserving safety and soundness.
The board also reviewed NCUA’s 2026–2030 Strategic Plan, which outlines the agency’s priorities over the next five years. The plan centers on three overarching goals supported by nine strategic objectives, all aligned with NCUA’s mission of promoting safe, sound, and resilient credit unions while expanding access to financial services.
The plan also incorporates an internal agency reorganization, which is expected to be implemented by the end of 2027.
Rounding out the meeting, the board discussed the 2026 Annual Performance Plan, which serves as the first-year roadmap for executing the broader strategic plan.
The plan includes 23 performance indicators designed to track progress and ensure accountability, translating long-term priorities into measurable outcomes for the year ahead.
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