A more thorough explanation:

The National Credit Union Administration (NCUA) is a government agency that was created by the U.S. Congress in 1970. Its main purpose is to protect the members who own credit unions, insure deposits at federally insured credit unions, and charter and regulate federal credit unions.

One of the ways that the NCUA protects credit union members is by administering the National Credit Union Share Insurance Fund. This fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the majority of state-chartered credit unions. This means that if a credit union fails, the NCUA will reimburse its members for their deposits up to $250,000.

As of December 2019, there were 5,236 federally insured credit unions with assets totaling more than $1.57 trillion and total loans of $1.1 trillion. The NCUA is also a member of the Federal Financial Institutions Examination Council, which oversees the development of uniform principles and encourages uniformity in the supervision of depository financial institutions.

For example, if you have a savings account at a credit union that is insured by the NCUA and the credit union fails, you will be reimbursed for up to $250,000 of your deposits. This protects your money and ensures that you don't lose your savings if something happens to the credit union.