The NCUA Deregulation Project: The Proposals

Following Executive Order 14192: Unleashing Prosperity Through Deregulation (EO), the National Credit Union Administration (NCUA) launched its Deregulation Project , a comprehensive effort to review; and, where appropriate, revise all of its regulations. The EO:

• Directs federal agencies to significantly reduce regulatory burdens to spur economic growth, innovation, and competitiveness by requiring that for every new regulation proposed, at least ten existing regulations be identified for elimination.
• Establishes a regulatory budgeting process to ensure that the total incremental cost of new regulations for fiscal year 2025 is “significantly less than zero,” meaning savings from repealed rules must exceed the costs of new ones.
• Directs the Office of Management and Budget to oversee implementation, set cost allowances for future years, and guide agencies in measuring and reducing regulatory costs.
• Lastly, the order aims to streamline federal rulemaking, lower compliance costs for businesses and individuals, and improve overall regulatory efficiency.

The NCUA has established a mission “to enable access to financial services by facilitating safe, sound, and resilient credit unions.” As part of the Deregulation Project, the agency will initially propose changing or removing regulations that are obsolete, duplicative, intended to serve as guidance (not regulatory or legal requirements), or overly burdensome. So far, three rounds of changes have been proposed:

• The first round focused on corporate credit unions, guidance for underserved areas, chartering, and supervisory committee audits.
• The second round included changes for surety/guarantor requirements, loans to other CUs, catastrophic reporting, and advertising accuracy.
• The most recent, and third round, proposed removing nondiscrimination requirements and moving guidance appendices for safeguarding member information. 

You will find some of those proposed changes discussed below.

Changes for Corporate Credit Unions 

NCUA is proposing to amend its regulations “for corporate credit unions by removing the requirement that a corporate credit union’s asset and liability management committee (ALCO) must have at least one member who is also a member of the corporate credit union’s board of directors.”

Changes for Limits on Loans to Other Credit Unions

NCUA is  proposing to remove the regulatory requirement that a federally insured credit union board approve loans to other credit unions and adopt written policies setting internal limits for those loans.

Changes for Accuracy of Advertising and Notice of Insured Status

NCUA is  proposing to remove the requirement mandating official advertising statements in advertisements by deleting the provision that sets that requirement. The proposal also revises the scope provision to reflect that the rule addresses the official sign, requires other advertisements to be accurate, and sets requirements for excess insurance advertising. 

Changes for Nondiscrimination Requirements

NCUA is proposing to remove  12 CFR 701.31 , which relates to nondiscrimination. While this proposal would result in no change to credit unions’ compliance obligations, the removal would lessen any potential confusion as 701.31 has not kept pace with current laws. For instance, it hasn’t been substantively updated in over 20 years while the underlying laws, such as the Federal Housing Act and the Equal Credit Opportunity Act, and interpretations have evolved.

All three rounds of the NCUA’s deregulation proposals are currently in the proposed stage and have not yet been finalized. They are currently undergoing public comment and agency review. The comment period for the first round closes on February 9, 2026, the second round remains open through February 27, 2026, and the third round has a comment deadline of March 16, 2026.  America’s Credit Unions will submit comment letters advancing our members’ interests in respect of these proposals. You can find visit our “Regulatory Comments and Final Rule Summaries ” page to read more and submit any feedback you may have.

The NCUA has indicated that additional rounds of proposals are expected. After the comment periods close, the agency will evaluate stakeholder feedback, make any revisions it deems appropriate, and then decide whether to issue final rules. Until then, existing regulations remain in effect.

The NCUA’s Deregulation Project marks a significant step toward reducing regulatory complexity and providing credit unions with greater flexibility to serve their members. With three rounds of proposals already underway and additional rounds expected, credit unions have an important opportunity to stay engaged, review the changes, and submit feedback during the public comment periods. Staying informed and proactive will be key for credit unions as these proposed changes move toward final implementation.