The NCUA has finalized a rule allowing federal credit unions to reimburse volunteer officials for dependent care expenses incurred while performing official credit union duties, a move designed to broaden participation in credit union governance.
The rule updates NCUA regulations to clarify that reasonable dependent care costs, including childcare, eldercare, and care for disabled dependents, may be reimbursed without being considered prohibited compensation for volunteer board members and committee officials.
NCUA officials said the change reflects the realities facing many potential volunteers as caregiving costs continue to rise. The agency believes the rule will help federal credit unions attract and retain qualified volunteers who might otherwise be unable to serve because of family responsibilities.
The rule applies to federal credit unions and gives boards the discretion to establish reimbursement policies. Credit unions are not required to reimburse dependent care expenses but may do so if they determine the costs are reasonable and directly related to official credit union business.
The policy is intended to make volunteer service more accessible to younger professionals, working parents, caregivers, and others who face financial obstacles to participation.
The NCUA said the final rule supports broader efforts to modernize credit union governance while preserving the industry's long-standing volunteer leadership model. The agency noted that removing barriers to board service could help credit unions expand the pool of candidates available for leadership positions and better reflect the communities they serve.
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