NCUA official seal. Credit/NCUA
The NCUA will hold a public hearing on Nov. 6 to discuss its proposed 2026–2027 staff draft budget, which outlines sweeping operational cuts alongside targeted investments in technology and modernization.
The combined 2026 draft budget totaled $313.8 million, representing a 20.6% decrease from 2025 levels. By 2027, spending would rebound modestly to $344.7 million, still nearly 13% below 2025. According to CU Times’ earlier analysis, the proposal marked one of the sharpest annual budget reductions in agency history, emphasizing efficiency and digital transformation.
The operating budget, at $292.4 million, included a 23% workforce reduction to 967 employees, driven by a voluntary separation program and hiring freeze. Pay and benefits, making up 82% of the budget, will drop to $239.6 million, though remaining employees will receive merit and locality raises. Travel expenses will fall 13% to $20.1 million, with greater reliance on remote examinations. Administrative costs are also down 27%, reflecting cuts in recruitment and data services.
The contracted services budget will decline 34%, but the NCUA said it plans to use $44.8 million in unspent prior-year funds to sustain critical IT, cybersecurity and examiner training functions.
In contrast, the capital budget will rise to $18.1 million, up nearly $11 million, underscoring the agency’s modernization priorities. Key investments include $10 million for implementing a 2026 reorganization plan, $3.2 million for enterprise computer replacements, $2.9 million for enhancements to the MERIT examination platform and $1 million for upgrading consumer complaint systems.
The Share Insurance Fund administrative budget, at $3.3 million, was down by $2.4 million, partly reflecting proceeds from the sale of the agency’s Austin, Texas office.
Public comments on the budget are due by Nov. 7 through the Federal eRulemaking Portal (Docket #NCUA-2025-0543). Those wishing to speak at the hearing must submit a request by Oct. 30 and written remarks by Nov. 3. The hearing will begin at 1 p.m. Eastern at NCUA headquarters and will be webcast live at ncua.gov.
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