Today, the Defense Credit Union Council, (DCUC), gave its first live testimony during the National Credit Union Administration’s, (NCUA), FY 2025 proposed budget public briefing. DCUC expressed its appreciation for the opportunity to contribute to the budget process, emphasizing its commitment to fostering a strong, independent, and efficient regulatory framework that ensures the safety and soundness of credit unions.

Jason Stverak appeared on behalf of DCUC, highlighting its concerns about the proposed $433 million budget—a 12% increase from FY 2024—which includes 14 additional staff positions and a $25.9 million rise in contracted services funding. While acknowledging the need for some budgetary growth to address emerging risks, DCUC urged the NCUA to ensure that increases are justified, necessary, and proportionate to the needs of the credit union industry. DCUC’s concerns and recommendations were as provided below:

Operational Expenses: DCUC questioned whether the budget’s significant increase in operational costs aligns with the NCUA’s core mission. DCUC called for a detailed explanation of these increases and their impact on the regulatory framework.

Staffing Growth: The addition of 14 new positions prompted DCUC to recommend a transparent cost-benefit analysis. DCUC expressed concerns about whether the proposed staffing increases represent an efficient use of resources, especially in light of economic uncertainties affecting credit unions and their members.

Return-to-Office Policies: Highlighting the credit union industry’s success when navigating pandemic challenges, DCUC recommended that the NCUA adopt similar approaches by facilitating a gradual return to in-person work.

DCUC provided specific recommendations to the NCUA for refining the proposed budget:

Justify Budget Increases: Offer detailed explanations for increased operational expenses and staffing, including their alignment with emerging risks and improved regulatory outcomes.

Commit to Efficiency: Identify opportunities to streamline operations, reduce expenditures, and leverage technology to lower costs.

Ensure Transparency: Create clear reporting mechanisms to demonstrate alignment with strategic goals and benefits for the credit union system.

Preserve Independence: Reaffirm the importance of an independent NCUA, avoiding initiatives that could detract from its core mission.

Facilitate Return-to-Office: Encourage a return to in-person work to enhance collaboration and oversight, reflecting best practices in the credit union industry.

Engage Stakeholders: Actively involve credit union stakeholders to ensure budget decisions address their needs and concerns.

The funding for the NCUA’s operations ultimately comes from credit unions, which are already navigating rising compliance costs, inflationary pressures, and economic uncertainties. Defense credit unions, in particular, face unique challenges in serving military and veteran communities. DCUC highlighted how excessive regulatory costs could hinder their ability to provide affordable financial services.

DCUC also asked several questions of the NCUA and its board members during the hearing, to include: Has the proposed budget incorporated flexibilities that may have to be implemented if remote work/telework agreements are modified; will a more expansive “return to office” policy affect locality pay options, and if so what budget impacts will that new policy have; does the Board believe that NCUA can adjust its workforce requirements in a timely fashion or are you expecting the current telework regime to remain in place for the duration of 2025; throughout the budget process what tradeoffs were made to arrive at the current proposal; and what programs were eliminated or downsized? What need proposals were not funded at all?

DCUC concluded its testimony by emphasizing the importance of fiscal prudence and efficiency in the NCUA’s operations.

“While we strongly support the NCUA’s mission, we urge the agency to address these budgetary concerns transparently and responsibly to ensure the continued health and stability of the credit union system,” adds Stverak.

"Today marks a significant milestone for DCUC as we had the privilege of providing live testimony during the NCUA’s FY 2025 proposed budget briefing,” said Anthony Hernandez, DCUC President/CEO. “We recognize the importance of this process in shaping the future of credit union regulation and remain committed to ensuring that budgetary decisions support a strong, independent, and efficient framework for our industry. As stewards of our members' trust, we will continue to champion policies that ensure the financial well-being of credit unions and the communities they serve. And kudos to Jason for all his hard work on behalf of our members!"

DCUC remains steadfast in its dedication to advocating for defense credit unions and will continue to work with policymakers to uphold a balanced regulatory environment.

For more information about DCUC’s advocacy, contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.

Read the testimony here.