NCUA’s continued budget growth is unsustainable, America’s Credit Unions Head of Emerging Issues/Deputy Chief Economist Curt Long says in this month’s Economic Update. The NCUA released its proposed 2025-2026 budget at the end of October and will hear public comment on it today.

“The 2025 proposal represents a 12% increase over 2024, and the 2026 proposed budget grows another 7.5%. These spending increases come at a time when inflation is subsiding,” Long said, noting that until 2023, NCUA’s operating budget increases were tied closely with the Consumer Price Index.

“The 2024 budget was a notable departure, as agency spending grew well in excess of inflation,” he added. “That gap is poised to widen through 2026, assuming inflation aligns with Federal Reserve expectations. This spending path is unsustainable.”

Long will present at NCUA’s public budget briefing today and America’s Credit Unions will submit official comments by the Nov. 27 deadline; credit unions are also encouraged to submit comments.

NCUA will release a final budget in December and vote on the budget at its Dec. 17 meeting.

Watch the full video below.