NCUA budget testimony urges support for core goals, promoting modernization

Urging the NCUA to carefully direct spending toward the areas of greatest impact, America’s Credit Unions Chief Economist Curt Long testified at the agency’s draft budget public briefing Wednesday. NCUA is proposing a 20.6% reduction from the approved 2025 budget to the draft 2026 budget. 

The reduction helps “address prior concerns about unsustainable costs and reflect renewed focus on the agency’s core mission of protecting credit unions,” stated Long, who also encouraged NCUA to consider redirecting hiring funds to modernizations that reduce recurring personnel and travel costs, evolve its supervisory strategy to focus examinations and travel on the highest-risk credit unions, and supervise low-risk institutions remotely using data and analytics.

Long noted that reviving NCUA’s prior “Return on Security Investment” framework could help the agency track tangible improvements and outcomes, and also pressed for stakeholder involvement in the agency’s reorganization process. The resulting discussion reinforced the importance of feedback and NCUA’s intent to share details and accept input, even while a formal notice and comment period is not likely.  

He also requested the agency ensure stakeholder involvement throughout its reorganization process. The agency indicated it would share details and accept input as the process moves forward, but there likely will not be a formal notice and comment period.  

GoWest Credit Union Association, Cooperative Credit Union Association, and Defense Credit Union Council also presented at the briefing. 

Detailed written comments on the NCUA’s budget are due to the NCUA by Nov. 7, and America’s Credit Unions submitted comments in October.

The NCUA Board must approve the budget before it can take effect. The NCUA withdrew its November board meeting, and lists its Dec. 18 meeting as “tentative.”

The complete briefing is available on NCUA’s YouTube page, or below: