This Week in Credit Union Legislative Matters
Supreme Court Case Could Reshape Independence of Federal Agencies
A pending U.S. Supreme Court decision could have significant implications for the structure and independence of federal regulatory agencies. The case, Trump v. Slaughter, centers on whether a president has the authority to remove leaders of independent federal agencies without cause, potentially revisiting the Court's 1935 decision in Humphrey's Executor v. United States, which has long limited presidential removal authority.
According to America's Credit Unions, a ruling that expands presidential authority could alter how independent agencies operate by allowing agency leadership to change more readily between administrations. Agencies potentially affected include the Federal Trade Commission, the National Labor Relations Board, the Securities and Exchange Commission, and other independent regulators. One key question before the Court is whether an exception will be made for the Federal Reserve, whose independence has historically been treated differently from other agencies.
The Court has not yet issued a final decision. However, it has allowed the removal of officials from several independent agencies while related litigation proceeds, a development that has been viewed as an indication the Court may be willing to expand presidential authority over independent agencies. A final ruling in Trump v. Slaughter is expected before the end of the Court's term and could have broad implications for federal oversight, regulatory policymaking, and the longstanding framework governing independent agencies.
ROAD to Housing Act Awaits Presidential Action Following Signing Delay
Congress has approved the bipartisan 21st Century ROAD to Housing Act, sending the legislation to the president for consideration.
The legislation, championed by House Financial Services Committee Chairman French Hill of Arkansas, includes several priorities long supported by the credit union movement, including modernization of federal credit union board requirements, codification of a mentorship program for small credit unions. The Senate approved the measure by a vote of 85-5 after the House previously passed the bill with broad bipartisan support.
While a signing ceremony was scheduled for June 24, President Trump postponed action on the bill, stating he would not sign the legislation until Congress passes the Safeguard American Voter Eligibility (SAVE) Act. As a result, the 21st Century ROAD to Housing Act remains pending presidential action. If enacted, it would represent one of the most significant credit union regulatory relief measures to advance in recent years.
NCUA Nominee Appears Before Senate Committee
John Crews, President Trump's nominee to serve on the NCUA Board, appeared before the Senate Banking Committee on June 25 as part of the confirmation process. Under committee rules, a vote on the nomination cannot occur immediately following the hearing, although the nomination could advance to the full Senate in the coming weeks.
The hearing follows the NCUA's June Board meeting, which included regulatory updates, a quarterly Share Insurance Fund report, and a mid-year budget update. If confirmed, Crews would join the agency at a pivotal time as the NCUA continues advancing regulatory modernization initiatives and considers several significant rulemakings affecting credit unions.
NCUA Updates Simplified CECL Tool for Second-Quarter Reporting
The NCUA released the June 2026 update to its Simplified Current Expected Credit Loss, or CECL, Tool, an optional resource designed primarily for small and non-complex credit unions to estimate allowances for credit losses on loans and leases. The update includes the latest life-of-loan, or Weighted Average Remaining Maturity, factors and is intended to assist credit unions in calculating credit loss expenses for the quarter ending June 30, 2026.
The Simplified CECL Tool is updated quarterly to support credit unions as they close their books and prepare NCUA Call Report filings. The agency encourages credit unions using the tool to review the accompanying user guide, model development document, and frequently asked questions available on its CECL resources webpage.
