How the National Credit Union Act Spurred Growth of the Movement

Last week, the Credit Union Movement celebrated 90 years of the National Credit Union Act, which was signed into law on June 26, 1934. This key milestone is a reason for credit unions to celebrate. The legislation made it possible for credit unions to organize under state or federal charter and created the Bureau of Federal Credit Unions, the first government agency to oversee credit unions. The organization later became the National Credit Union Administration (NCUA).

The act was spurred into law by a grassroots movement in America working to spread the idea of cooperative credit. In the decades after the act was signed, credit unions grew rapidly, even during tough economic times. A 1964 Social Security Administration report shared that in 1934, there were 39 credit unions in the U.S. serving 3,200 Americans; by 1964, there were 11,200 credit unions with 7.7 million members. Today, more than 140 million Americans belong to a credit union and benefit from being part owners in an independent financial cooperative.

Every day, we celebrate the impact credit unions make and we look forward to another 90 years of service for our members.