NCUA headquarters. Credit/NCUA
The Defense Credit Union Council (DCUC) urged the NCUA to balance cost-cutting with its mission to support credit unions serving military members and their families, following the agency’s release of its proposed 2026–2027 budget.
In a letter to NCUA Chairman Kyle Hauptman, DCUC Chief Advocacy Officer Jason Stverak commended the agency’s effort to trim spending by more than 20% in 2026, calling it “a responsible and thoughtful response” to a changing regulatory environment. However, Stverak cautioned that efficiency gains must not compromise safety, supervision or outreach to vulnerable communities.
The NCUA’s proposed $313.8 million 2026 budget includes major cuts across operations, staffing and travel, while increasing investment in technology modernization and digital oversight tools. DCUC urged the agency to extend exam cycles for well-performing credit unions, given the continued decline in the number of federally insured institutions, now just over 4,370 nationwide.
DCUC also recommended deeper reductions to the agency’s travel and training budgets, citing the success of virtual exams and remote learning. But the council raised concerns about steep staffing cuts to the Office of External Affairs and Communications (OEAC) and the Office of Credit Union Resources and Expansion (CURE), which support small, low-income and minority credit unions.
“Reductions of 82% to OEAC and 22% to CURE risk eroding the very programs that enable credit unions to expand access and engage members,” Stverak wrote.
While supporting the NCUA’s $10 million reorganization plan and technology upgrades, DCUC urged greater transparency around cybersecurity initiatives and stakeholder engagement. The group also recommended further cuts to the Office of Consumer Financial Protection, arguing that limited resources should focus on higher-risk institutions.
Public comments on the NCUA’s draft budget are due Nov. 7, ahead of a Nov. 6 public hearing at agency headquarters.
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