2026-11507RuleWallet

Credit Unions Now Pay for Board Members' Babysitters

Published Date: 6/9/2026

Rule

Summary

The NCUA just made it easier for volunteer credit union board members to get reimbursed for dependent care costs when they attend meetings or do official work. This change helps remove a big hurdle for folks with kids or other dependents, making volunteer service more family-friendly. The new rule kicks in on July 9, 2026, letting credit unions tailor policies to fit their unique needs without extra pay limits.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Volunteer Board Members Can Be Reimbursed

The NCUA now excludes dependent care costs from the definition of "compensation," so federal credit unions (FCUs) may reimburse volunteer officials for reasonable dependent care costs they incur while attending board meetings or performing official duties. The final rule is effective July 9, 2026, and allows each FCU board to adopt written policies permitting such reimbursements.

Eligibility Extended to Many Volunteer Officials

The final rule authorizes FCUs to extend dependent care reimbursement to "volunteer officials," which includes associate directors and committee members who perform board-designated services beyond honorary roles; directors emeriti remain excluded. This change applies to FCUs beginning July 9, 2026.

Who Counts as a Qualifying Dependent

The rule defines "dependent care costs" by adopting the Internal Revenue Code's qualifying individual standard in 26 U.S.C. 21(b) — for example, a dependent child under age 13 or a spouse/dependent of any age unable to care for themselves who lives with the volunteer official for more than half the year. FCU boards may rely on that definition when setting reimbursement policies.

Rule Applies to Corporate FCUs; FISCUs Governed by State Law

The final rule applies to federal credit unions (FCUs), including corporate FCUs, starting July 9, 2026. Federally insured, state-chartered credit unions (FISCUs) are not subject to 12 CFR 701.33 and must follow applicable state laws regarding board reimbursement.

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Key Dates

Published Date
Rule Effective
6/9/2026
7/9/2026

Department and Agencies

Department
Independent Agency
Agency
National Credit Union Administration
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