Advocating for credit unions prior to deposit insurance hearing

November 18, 2025

The credit union system remains strong, well capitalized, and a safe place for consumers, America’s Credit Unions wrote to the House Financial Services Committee in advance of today’s hearing on the future of deposit insurance. While America’s Credit Unions has not sought increases in coverage limits for the National Credit Union Share Insurance Fund (NCUSIF) at this time, any changes in coverage for the Federal Deposit Insurance Corporation must be matched with parity in coverage from the NCUSIF. 

“Unlike the banking system where roughly 50% of deposits were uninsured by the FDIC before the 2023 failures, nearly 90% of credit union deposits are insured by the NCUA and its NCUSIF,” the letter reads. 

America’s Credit Unions generally supports several pieces of legislation to be discussed during the hearing, including:

  1. Draft legislation to require the FDIC and NCUA to carry out an analysis to determine whether insurance coverage should be raised on covered transaction accounts, and for other purposes, which America’s Credit Unions generally supports;
  2. The Growing Deposit Insurance for the Future Act, which would restore inflationary increases in coverage levels, such as tying the levels of the standard maximum deposit insurance amount to the Personal Consumption Expenditures Price Index;
  3. Draft legislation to authorize the FDIC and NCUA to establish emergency transaction account guarantee programs, and for other purposes. America’s Credit Unions supports allowing NCUA to establish emergency transaction account guarantee (TAG) programs; and
  4. The Employee Paycheck and Small Business Protection Act (H.R. 4551), which would allow the FDIC and NCUA to establish coverage levels for certain non-interest bearing transaction accounts but require any final rulemaking to change coverage levels for business payment accounts to be jointly approved by the FDIC and NCUA. 

America’s Credit Unions also noted support for Senate legislation from Sens. Bill Hagerty, R-Tenn., and Angela Alsobrooks, D-Md., to expand deposit insurance coverage for non-interest-bearing transaction accounts as long as it ensures parity and works for credit unions. 

Read the letter here