NCUA Chairman Hauptman’s imminent departure and government shutdown
Just when you thought 2026 couldn’t get more interesting for the credit union industry, the universe decided to throw two curveballs at the NCUA in the span of 24 hours.
- The government shutdown
- NCUA Chairman Kyle Hauptman’s appointment to the Public Company Accounting Oversight Board(PCAOB). (The PCAOB is an independent, non-profit corporation established by Congress under Sarbanes-Oxley that is overseen by the U.S. Securities and Exchange Commission.)
Let’s take them one at a time.
Another Shutdown Again
The partial government shutdown is here, but the good news is the NCUA isn’t closing its doors. Unlike most federal agencies, the NCUA funds its operations through fees charged to federal credit unions and transfers from the National Credit Union Share Insurance Fund (NCUSIF). So, while Congress argues, the agency keeps the lights on.
The funding bill was expected to pass smoothly through both houses of Congress. However, the Democrats now want to strip out Department of Homeland Security funding following the shooting deaths of Alex Pretti and Renée Good by federal agents in Minneapolis. A compromise has been reached to temporarily fund DHS, however, while the Senate passed the bill on Friday, the House will not be in until Monday, forcing at least a brief partial shutdown.
The Other Side of the Coin
As many credit unions serve members from the affected federal agencies, including the Pentagon, Transportation and more, this shutdown could hit your members directly. Credit unions were uber-prepared for the last government shutdown, and we know this will be no different.
The NCUA is asking credit unions to get ahead of this. Their guidance is straightforward:
Make sure your policies give you the flexibility necessary to respond to members who need their credit union. Short-term loans with special terms, payment flexibility and skip-a-payment are all good options. However, NCUA reminds, “Consistent with safety and soundness, credit unions may want to consider offering special programs to assist impacted members.”
- If your credit union has offices on federal property, start planning for potential access issues now.
- For members who get direct deposits from the federal government, consider offering advances before those paychecks stop coming.
- And if you participate in any government programs that might get disrupted, have a contingency plan ready.
This is where the cooperative model earns its keep. When the government fails the people, credit unions show up. Last shutdown, credit unions across the country stepped up with zero-interest loans, fee waivers and financial counseling while members waited for paychecks that weren’t coming.
If you haven’t already reviewed NCUA’s Letter to Credit Unions 11-CU-05, “Planning and Preparedness for a Potential Government Shutdown,” pull it up today. It’s not new guidance, but it’s the playbook.
Hauptman’s Appointment to PCAOB
Now here’s where it gets interesting.
The day before the shutdown, NCUA Chairman Kyle Hauptman announced he had been appointed to the Public Company Accounting Oversight Board by President Trump. In his statement, Hauptman said he “intends to remain in my role as NCUA Chairman until my successor is appointed by President Trump and confirmed by the U.S. Senate.”
We congratulate Chairman Hauptman for his new nomination. Many credit union leaders approved of his penchant for innovation and deregulation.
America’s Credit Unions President/CEO Scott Simpson responded to the announcement, “We congratulate NCUA Board Chair Hauptman on his appointment to the PCAOB. In his work on the NCUA Board, Hauptman has prioritized effective oversight, right-sized regulations, and thoughtful modernizations to ensure a safe, stable credit union industry. These priorities are sure to continue in his new capacity. We look forward to continuing to work with Hauptman through the rest of his term at the NCUA.”
In politics, that timeline for his departure is anyone’s guess. After his term ended, former Chairman Dennis Dollar finally left after a year with no replacement announced. At that time, however, the board was at full capacity. And, frankly, the NCUA typically isn’t high on any administration’s agenda.
However, Hauptman is also the only remaining board member at the NCUA, so it’s very fortunate that he plans to remain in place until at least one new board member is appointed.
What Happens If No One Remains?
Without a quorum, even if it’s a quorum of one, the board can’t vote on policy changes, approve new enforcement actions or other board-level decisions. Day-to-day operations and examinations can continue under delegated authority, but anything requiring a board vote? Dead in the Potomac.
This comes on top of the broader constitutional battle over independent agency leadership that’s heading to the Supreme Court in Trump v. Slaughter. The outcome of that case will likely determine whether the NCUA’s independent agency status survives at all.
Meanwhile, credit unions are dealing with rising delinquencies, a government shutdown affecting federal employee members, and a regulatory environment that feels like it’s being run by a skeleton crew.
The Bottom Line
Two storms in two days. A government shutdown that could be a direct hit to your members, and the eventual departure of the only NCUA board member left standing.
The only thing credit unions can control is how they respond to their members and staff, with education and compassion. Ensure your members know you’re there for them.