At midnight tonight, credit unions are poised to secure a major victory today as the bipartisan 21st Century ROAD to Housing Act — which contains the Credit Union Board Modernization Act (CUBMA) — becomes law.
The Road to Housing Act is a win for housing affordability, while CUBMA provides long-sought regulatory relief for federally chartered credit unions. The concept for CUBMA originated from a conversation with Shapiro credit unions in California seeking charter parity with state-chartered credit unions.
The bill’s passage by Congress shows how advocacy in action can result in operational improvements for credit unions.
CUBMA represents one of the most significant regulatory relief victories for federally chartered credit unions in recent years, providing greater governance flexibility while allowing boards to focus resources on serving members. Specifically, the bill allows eligible federal credit union boards to meet six times a year instead of the currently required 12 meetings annually.
The reduced meeting schedule is available only to federal credit unions with:
Monthly meetings remain required for:
The legislation also contains provisions to establish a mentor-protégé program for smaller financial institutions and streamline the chartering process for new credit unions and community banks.
California’s Credit Unions and Nevada’s Credit Unions are proud to have worked on this initiative for several legislative sessions. The bill was first introduced in the House by California Congressman Juan Vargas in 2022, and advanced through the House and Senate through leadership from local credit unions, the California league’s advocacy team, and America’s Credit Unions.
“We are grateful to Congressman Vargas for championing this milestone for credit unions nationwide,” said Stephanie Cuevas, senior vice president of federal advocacy for California’s and Nevada’s Credit Unions. “By giving federally chartered credit unions the freedom to hold board meetings six times a year rather than monthly, this law provides operational breathing room. This flexibility helps community-minded volunteers successfully balance their work, home, and community responsibilities.”
Watch for additional guidance on this topic. This change will necessitate amending Article VI of the Federal Credit Union Bylaws.
Federal credit unions should not change their board meeting frequency until the National Credit Union Administration (NCUA) provides guidance on amending the bylaws.
President Donald Trump has until midnight tonight to veto the 21st Century Road to Housing Act.
If no veto is issued before the constitutional deadline, the legislation will become law. Should Trump veto the bill, the league will provide additional guidance.
