By Lydia Wedlock, Editorial Assistant
At the hearing for the NCUA’s proposed budget for 2026-2027, America’s Credit Unions Chief Economist Curt Long provided suggestions for how NCUA can make the proposed reductions to its budget without sacrificing its ability to fulfill its mission.
NCUA Budget Proposal
The NCUA’s proposed budget is $313.8 million, which is a 20.6 percent decrease from last year’s budget. Factors driving the decrease include reductions in the NCUA’s staff, budgets for employee travel, and budgets for contracted services.
Comments From America’s CUs
Long and America’s Credit Unions did generally agree that the NCUA needs a leaner workforce, but felt that they should ensure that its specialized offices remained the right size and that they should avoid becoming just like the CFPB. They also advised caution on lowering spending in IT as it could weaken cybersecurity efforts. As for examinations, they suggested that any modernization should be done through merit, as well as provide updates on modernization efforts.
“A more modern, risk-based, and innovation-focused supervisory framework depends on carefully directing spending toward the areas of greatest impact,” said Long. “The budget should not only fund ongoing operations but also drive internal efficiency, improve accountability, and ensure every dollar contributes to mission success. A well-structured budget should support the agency’s core goals of safety and soundness, access, and operational excellence, while promoting modernization and long-term savings.”
General Takeaways
Overall, it was made clear that any cost savings the NCUA chooses to make should be mission-driven and strategic and not broad-based. Calls for clear communication on any changes to structure and reorganization were also made apparent, as well as all modernization efforts.