Illinois League-backed credit union act modernizations signed into law

Extensive advocacy efforts by the Illinois Credit Union League (ICUL) and credit unions throughout the state paid off Tuesday as Governor J.B. Pritzker signed needed updates to the Illinois Credit Union Act.

The ICUL-supported amendments reflected in Senate Bill 1994 enact important, member-focused changes that will strengthen the operating environment for Illinois credit unions. ICUL’s team in Springfield worked in close collaboration with state legislators and regulatory partners to move the measure forward.

“These changes reflect our ongoing commitment to modernizing the statutory framework under which Illinois credit unions operate,” said Libby Calderone, president/CEO of the Illinois Credit Union League. “By proactively updating the Illinois Credit Union Act, we ensure our credit unions—regardless of size—have the tools they need to thrive while continuing to uphold the highest standards of service and member protection.”

SB 1994 will:

• Help prevent financial exploitation by authorizing the sharing of information with trusted advisors designated on member accounts;
• Provide regulatory relief for small credit unions by implementing audit relief for credit unions with assets under $10 million;
• Allow credit unions to adjust their meeting schedule. Highly rated credit unions, under specified qualifications, may change to a quarterly meeting schedule;
• Clarify credit union election options, giving members the ability to vote in person by ballot; and
• Enable an accelerated merger process when there are safety and soundness concerns, with agreement by the involved credit unions and the Department of Financial and Professional Regulation.

“This enactment underscores the power of collective advocacy,” said Ashley Sharp, senior vice president of state advocacy and legislative counsel for ICUL. “We are proud that Illinois regularly updates its Credit Union Act to reflect the realities of today’s financial environment, and we thank the General Assembly, Governor, and our regulatory partners for their support in making these improvements a reality.”

Earlier this session, ICUL was successful in enacting a one-year delay of the credit union-opposed Illinois Interchange Fee Prohibition Act (IFPA) by moving implementation to July 2026 as legal challenges against the IFPA play out. The IFPA would ban financial institutions and other entities from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity.