WASHINGTON—With just days left in the Senate’s 2025 legislative calendar, the Defense Credit Union Council is urging chamber leaders to fast-track passage of S. 522, the Credit Union Board Modernization Act, calling it a rare bipartisan reform that would immediately reduce outdated regulatory burdens on credit unions nationwide.
In a letter Wednesday to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, DCUC Chief Advocacy Officer Jason Stverak pressed for the bill to be hotlined and approved by unanimous consent before the session adjourns.
Stverak said the measure—backed by dozens of senators from both parties and endorsed by every major credit union trade group—would modernize a 1930s-era requirement that forces federal credit union boards to meet monthly, freeing up time and resources for institutions serving more than 144 million members, including millions of service members and veterans.
“This commonsense modernization of the Federal Credit Union Act is non-controversial and enjoys broad support across party lines and throughout the credit union community,” wrote Stverak. “Swift enactment would demonstrate Congress’s commitment to reducing outdated regulatory burdens and improving financial service delivery for millions of Americans – including our nation’s service members and veterans.”
Modernizing An Antiquated Requirement
Stverak wrote that S. 522 amends an “antiquated” provision of the Federal Credit Union Act that currently mandates credit union boards of directors to meet at least once per month.
“This 1930s-era requirement (enacted when communication technology and governance practices were far less advanced) has long been due for update,” Stverak wrote. “The Credit Union Board Modernization Act recognizes that a ‘one-size-fits-all’ monthly meeting mandate is no longer necessary for well-run institutions.”
Under S. 522, federal credit union boards would have the flexibility to meet as few as six times per year (at least once per fiscal quarter) instead of every month, provided the credit union is in good standing.
“Importantly, the bill preserves stronger oversight for those that need it: newly chartered credit unions and those with low federal examination ratings would continue to be required to meet monthly. This tailored approach balances modernization with safety and soundness – ensuring that only credit unions with a demonstrated record of sound management can reduce their meeting frequency, while higher-risk or de novo institutions remain under closer board supervision,” Stverak stated.
Stverak pointed out CUA would retain full authority to examine and supervise governance of all credit unions to ensure this flexibility is utilized responsibly.
“In sum, S. 522 makes a prudent, ‘common-sense change’ in law: allowing stable credit unions the operational flexibility to set meeting schedules according to their needs, while maintaining rigorous governance where appropriate,” Stverak concluded.
Click here for the full letter.