NCUA Staff Draft Budget 2026-2027

The Association commends the Board for proposing budgets that would be 20.6 percent lower in 2026 compared to 2025, as well as 12.8 percent lower in 2027 versus NCUA's 2025 combined budgets. These savings should be added to the National Credit Union Share Insurance Fund's reserves to reduce the likelihood of Share Insurance Fund premiums being due when credit unions would also likely face increased loan loss expenses due to Current Expected Credit Losses (CECL). Once the Fund's reserves exceed its normal operating level, the Board should authorize a dividend from the Fund paid to all federally-insured credit unions. The Board should allocate examination resources based on each federally-insured credit union's risk to the Share Insurance Fund. Smaller credit unions generally do not present materials risks to the Fund, and whether a larger credit union presents materials risk depends on its unique operations and balance sheet as well as its size relative to the Fund. NCUA should retain staff who are knowledgeable about credit unions so that examinations and policymaking focus on material safety and soundness, Bank Secrecy Act, or consumer protection risks. Supervision of smaller credit unions should focus on technical assistance and coaching. Larger, more complex credit unions should be assigned examiners who understand these institutions' operations and allow their managers sufficient leeway to run their credit unions as they see fit within applicable rules.