WASHINGTON — America’s Credit Unions and the Defense Credit Union Council are both voicing support for a proposed rule from the National Credit Union Administration that would allow federal credit unions to reimburse volunteer officials for dependent care expenses incurred while performing official duties.
Both groups said the change would expand board participation and modernize governance.
In separate comment letters submitted to NCUA, America’s Credit Unions and the Defense Credit Union Council said the proposal to amend Section 701.33 would remove a practical barrier that can prevent qualified individuals from serving on credit union boards.
America’s Credit Unions said the proposal aligns with its earlier request that the agency clarify reimbursement policies and formally recognize dependent care as a legitimate expense tied to board service.
Helping Volunteerism to Remain ‘Feasible’
“Allowing credit unions to reimburse reasonable dependent care costs incurred in connection with official duties helps ensure that volunteers are not required to bear these expenses personally in order to serve,” the organization wrote, adding that such costs can arise from attending board meetings, training sessions and other governance activities.
The group said the change would help ensure volunteer service remains feasible for individuals with caregiving responsibilities, supporting broader participation in credit union leadership.
DCUC similarly endorsed the proposal, calling it a step toward modernizing regulations while maintaining safety and soundness.
“This rule is an excellent example of modernizing regulations for today’s environment,” DCUC said in its comments, adding that it would give federal credit union boards flexibility to adopt policies allowing reimbursement for dependent care expenses tied to official duties.
Boards to Have Discretion
DCUC emphasized that the proposal would not mandate reimbursement, but instead would give boards discretion to establish policies — including stricter limitations or prohibitions — subject to supervisory oversight.
Both organizations stressed that dependent care reimbursement should be treated as a reasonable expense rather than compensation. DCUC noted that such costs could be verified through standard documentation, such as receipts or invoices, helping ensure appropriate oversight.
The trade groups also highlighted broader governance implications, arguing the proposal could help credit unions attract and retain qualified board members.
‘Significant Barrier’
DCUC said dependent care responsibilities can be a significant barrier to participation, particularly for military families and dual-income households with irregular schedules. Expanding reimbursement options would help broaden the pool of eligible volunteers and strengthen leadership at credit unions, the group said.
“Credit unions that can attract the best possible board members for leadership positions create a foundation for success,” DCUC wrote, linking stronger governance to the overall safety and soundness of the system.
America’s Credit Unions similarly framed the proposal as a practical update that reflects the realities of modern volunteer service, noting that caregiving costs are often necessary for individuals to participate in governance activities.
Both groups said the proposed rule appropriately balances flexibility with regulatory oversight by allowing boards to design reimbursement policies that fit their institutions while remaining subject to NCUA supervision.
