The NCUA board approved a notably lower 2025-2026 budget than what was proposed last month. America’s Credit Unions has vocalized concerns with the agency’s unsustainable budget increases.  

“For too many years, the NCUA has been a runaway train of frivolous spending when they should be finding ways to cut costs. We appreciate the agency taking another look at its staff needs and reducing that proposal, but we still have concerns with its spending,” said America’s Credit Unions President/CEO Jim Nussle. “With this final budget, the agency isn’t reducing or being more efficient in its spending. Instead, it simply reduces the cash buffer in the Operating Fund. While America’s Credit Unions supports a thorough review of agency cash needs and a return of surplus funds to credit unions, this is not a sustainable strategy. Eventually these surplus credits will dry up and credit unions will be stuck with the bill.” 

Of note, the final budget also eliminates several proposed positions, many of which America’s Credit Unions opposed. 

This was one of two measures addressed by the board, who also unanimously approved a final rule related to succession planning. The NCUA acknowledged many of America’s Credit Unions concerns and revised the final rule in several ways. The board also delayed the effective date of the final rule until Jan. 1, 2026. The final rule still requires the succession plan to address a federally insured credit union’s strategy for recruiting candidates with the potential to assume certain covered positions. 

The NCUA has a sample planning template available specifically for smaller credit unions, which could also be helpful for larger-sized credit unions.