As the year comes to a close, the NCUA is wrapping up official business, such as establishing budgets for the years ahead. Just last week it approved the Central Liquidity Facility Budget and now it’s looking toward its own 2025-2026 Operating Budget, which is set to be approved on December 17th.
With comments on the proposed budget due just before the Thanksgiving holiday, America’s Credit Unions and other credit union organizations and leagues have revealed the feedback submitted to the organization, namely, offering criticism for the expansion of the budget.
Citing the slowdown of inflation, America’s Credit Unions argued that the hefty increase of the budget was unneeded, with Head of Emerging Issues/Deputy Chief Economist Curt Long calling it an “unnecessary and unsustainable administrative expansion that credit unions should not have to bear.”
Overall, the 2025-2026 Operating Budget is looking at an increase of 12% from the previous year, which is quite the jump, though a large portion of this increase can be credited to the capital budget, which alone received a 32.6% bump. The travel budget also rose by 47%, which Long rebuked, noting that the organization should be relying on technology to lessen costs, not raise them. “If NCUA examiners can examine a credit union remotely, then virtual trainings are certainly possible,” said Long.
ACU wasn’t the only organization to balk at the double-digit increase. Both the Nevada and California State Credit Union Leagues wrote to the NCUA—via a combined letter—expressing concern over the number and urging the NCUA to practice fiscal discipline.
“As the steward of resources derived from the credit union industry,” wrote Scott F. Simpson, President/CEO of the two leagues, “the NCUA has a responsibility to operate efficiently while balancing its regulatory obligations. Excessive budget growth is inconsistent with the principles of accountability and prudent management that are central to the industry’s mission of providing safe, affordable financial services.”
Not every organization was so staunchly opposed to added expenses, however. Inclusiv, the national network of community development credit unions, praised the NCUA’s addition of a Climate Financial Risk Officer in the 2025-2026 budget and expressed hope that the new position “be charged with advancing proactive measures to support credit unions in lending that strengthens their communities’ resiliency and energy independence, preparing them to avert long power outages and the losses to life, income, and property that can result.”
The final vote on the proposed budget will take place on December 17th. All comments submitted to the NCUA on the matter (14 in total) can be found on their website.
