NCUA Deregulatory Project: Round 4

Posted by Erin Hall on January 28, 2026

The NCUA has released its fourth set of proposed rule changes under its Deregulation Project, aimed at reducing duplicative requirements and increasing operational flexibility while maintaining safety and soundness.

This round of proposals will be open for public comment for 60 days following publication published in the Federal Register.

Public Unit & Nonmember Shares (12 CFR 701.32(b)(2))

• Eliminates the requirement for a written board plan when nonmember and public unit funding exceeds 70% of paid in, unimpaired capital.
• Impact: Less documentation for FICUs; greater board discretion in funding and liquidity strategy.

Termination of Excess Insurance (12 CFR 741.5)

• Removes the mandated 30day advance notice before ending supplemental share insurance.
• Impact: Streamlined insurance changes; member notice still required but timing becomes flexible.

Maximum Borrowing Authority (12 CFR 741.2)

• Removes NCUA borrowing limit language tied to share insurance.
• Impact: FISCUs gain flexibility under state law; no change for FCUs due to federal statutory limits.

Disclosure of Share Insurance for Nonmember Shares (12 CFR 741.10)

• Eliminates duplicative disclosures about uninsured nonmember deposits.
• Impact: Reduced reporting burden with no loss of consumer transparency.

These proposals advance principles-based regulation, reduce administrative burden, and expand board-level discretion—especially in liquidity and nonmember funding management.

These proposals align with GoWest’s continued advocacy to reduce administrative burden and the cumulative regulatory impact to credit unions. While none of the changes introduce safety-and-soundness risks, they collectively increase board-level discretion, especially concerning liquidity management and non-member funding strategies.

If you have examples of rules that are not tied to statute and would not pose a material risk of loss to the Share Insurance Fund, then please reach out to John Trull at [email protected] or Erin Hall at [email protected] to add your ideas for consideration.

GoWest will continue to engage with the NCUA on these regulatory efforts and push for additional regulatory relief, so please continue to work with our team on making regulations work better for you and your members.

Posted in Advocacy on the Move, Regulatory Advocacy.