Celebrating 90 years of the Federal Credit Union Act – signed in 1934 by President Franklin D. Roosevelt.
Wednesday, June 26, was a very special day for credit unions, as it was significant in the history of the credit union movement. This year, June 26 marked 90 years since the Federal Credit Union Act was signed by President Franklin D. Roosevelt.
While the first credit union in the United States was formed by Alphonse Desjardins in 1909, it wasn’t until this day in 1934 that President Roosevelt signed the Federal Credit Union Act, enabling all 50 states to authorize federally chartered credit unions. FDR and his administration supported the idea of cooperative financial institutions, and the concept spread quickly.
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.
In the years since the passage of the Federal Credit Union Act, credit unions have grown, evolved, and of course, are more complex and regulated today than those first institutions. Most importantly – credit unions continue to provide needed financial services to millions of Americans – including many in North and South Dakota.
