Credit Union Board Modernization Act Becomes Law: What It Means for the Dakotas

A new federal law gives eligible credit unions greater flexibility in how often their boards meet, reducing regulatory burden while preserving strong governance and oversight.

​A long-standing credit union advocacy priority has become law in July 2026. With this it is bringing new flexibility to federally chartered credit unions, including those serving members across North Dakota and South Dakota.

The Credit Union Board Modernization Act became law in July as part of the broader 21st Century ROAD to Housing Act. The legislation amends the Federal Credit Union Act to give qualifying federal credit unions the option to reduce the minimum number of board meetings from 12 per year to six, while still requiring at least one meeting each fiscal quarter.

For Dakota credit unions, the change represents a practical form of regulatory relief that can give volunteer directors and management more flexibility to focus their time and attention where it can have the greatest impact: serving your members and continuing to strengthen your credit unions.

What Changes?
Under the new law, federally chartered credit unions that meet certain requirements may hold a minimum of six board meetings per year, rather than meeting monthly.

The flexibility is not available to every federal credit union. The law maintains a higher meeting requirement for credit unions in certain circumstances:

• Credit unions in their first five years of operation must continue to meet at least monthly.
• Federal credit unions with a CAMELS composite rating of 1 or 2 and a management component rating of 1 or 2 may meet as few as six times per year, provided they meet at least once during each fiscal quarter.
• Credit unions with a CAMELS composite rating of 3, 4 or 5, or a management component rating of 3, 4 or 5, must continue meeting at least monthly.

Importantly, six meetings is a minimum, not a requirement to reduce meetings. A board may continue meeting monthly or more frequently if that schedule best serves the credit union.

What Does This Mean for Dakota Credit Unions?
The impact will look different from credit union to credit union, but the overall goal is straightforward: give well-run credit unions greater flexibility without weakening board oversight.

For smaller credit unions in particular, monthly board meetings can require a significant investment of volunteer and staff time. Reducing the number of required meetings may allow boards to spend more time on strategic priorities, member needs, community involvement and other areas where their leadership makes a difference.

The change may also provide greater flexibility for boards whose directors live and work across rural areas of the Dakotas. Fewer mandatory meetings could reduce some of the logistical challenges associated with coordinating volunteer directors, travel and schedules, while still maintaining quarterly board oversight.

That flexibility is especially meaningful in a state like North Dakota and across the Dakotas, where credit unions play an important role in serving members in rural and smaller communities.

What Should Federal Credit Unions Do Now?
One important detail for credit unions considering the change: the law does not automatically change a credit union's bylaws.

The National Credit Union Administration (NCUA) has indicated that it considers the changes under the new law to be self-executing. Eligible federal credit unions may begin using the new six-meeting schedule after properly amending their bylaws. According to NCUA's guidance, credit unions do not need to wait for the agency to update its regulations and Model Bylaws or obtain prior agency approval of the amendment.

Credit unions considering the change should therefore:

1. Review their current bylaws and board meeting requirements.
2. Confirm eligibility under the new law, including CAMELS and management ratings.
3. Determine whether a six-meeting schedule makes sense for the credit union and its board.
4. Properly amend the bylaws before moving from a monthly meeting schedule to a six-meeting schedule.
5. Continue monitoring NCUA guidance as the agency updates its regulations and Model Bylaws.

The decision ultimately belongs to each eligible credit union and its board. The law provides flexibility, it does not require boards to reduce the number of meetings they hold.

A Win for Credit Union Advocacy
The Credit Union Board Modernization Act is also a reminder of what sustained advocacy can accomplish.

The legislation has been a credit union advocacy priority for several years, including efforts highlighted by DakCU in previous updates. An earlier version passed the U.S. House in 2022 with more than 100 co-sponsors but did not advance through the Senate. The legislation was subsequently reintroduced and ultimately became part of the bipartisan housing package passed by Congress in June 2026.

DakCU, America's Credit Unions, and credit union advocates across the country supported the legislation throughout that process.

For Dakota credit unions, this is more than a change to a meeting requirement. It is an example of how a unified voice for credit unions can help modernize regulations that no longer fit the way credit unions operate today.

As DakCU continues to monitor implementation of the new law and additional NCUA guidance, we will keep Dakota credit unions informed about what the changes mean for their boards, management teams and members.

The bottom line: Eligible federal credit unions now have another tool to make governance more efficient and better aligned with their individual needs, while maintaining the oversight and accountability that strong credit union governance requires.
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For questions please contact Director of Political & Grassroots Affairs, Taylor Stricklin; or Director of Political Strategy and Engagement, Kenley Lamberty.