ALEXANDRIA, Va.--NCUA has released its staff draft budget for 2026–2027, projecting a 20.6% decrease from the 2025 budget.
The proposed combined 2026 budget is $313.8 million. The agency said three main drivers contribute to the reduction in proposed 2026 budget levels: a 23% percent reduction to NCUA staffing levels, a 34.1% reduction to contracted services budgets, and a 13.4% reduction in budgets for employee travel.
NCUA’s 2026–2027 staff draft budget justification includes three separate budgets. The proposed operating budget is $292.4 million. The proposed 2026 capital budget is $18.1 million, which includes $10.0 million for implementation of the NCUA’s reorganization plan for 2026 along with investment in systems to increase efficiency and meet other administration priorities. The proposed Share Insurance Fund administrative budget is $3.3 million, the agency said.
The proposed budget summary and detailed budget justifications can be found on the Budget and Supplementary Materials page on NCUA’s website.
The budget, NCUA noted, is now available on the agency’s website for review and comment. The NCUA has also submitted the proposed budget for publication in the Federal Register, and the comment period remains open until October 24.
To comment on the proposed budget:
- Submit comments on Docket # NCUA-2025-0543 at the Federal eRulemaking Portal by October 24.
- Comments should provide specific, actionable recommendations related to NCUA’s staff draft budget.
The agency said it will issue a notice about the public hearing on the budget on a future date.
CU Trades Respond
“The Defense Credit Union Council applauds the NCUA for proposing a prudent right-sizing of its budget and workforce in the 2026–2027 draft," said DCUC Chief Advocacy Officer Jason Stverak. "This proposal to reduce staff and expenditures reflects the changing reality of our industry: With fewer credit unions to supervise, it makes sense for the agency’s budget to contract accordingly. We commend NCUA’s leadership for recognizing the need to align resources with a consolidating industry, which will help avoid placing unnecessary financial burdens on remaining credit unions. By streamlining operations, NCUA is demonstrating fiscal responsibility while still upholding its core mission to regulate and insure credit unions."
Stverak pointed to the 20.6% reduction being driven largely by an expected 23% reduction in agency staffing.
"These efficiency measures are substantial," he said. "Through voluntary separation programs, NCUA anticipates achieving roughly a 21.5% cut in headcount by the end of 2025 – amounting to approximately 250 employees – which is projected to generate around $75 million in savings in 2026. DCUC appreciates that the agency is pursuing these cuts through voluntary incentives and natural attrition, a thoughtful approach that minimizes disruption. Importantly, right-sizing the agency can yield direct benefits for credit unions and their members. For example, with lower operating costs, NCUA has indicated some of these savings will translate into lower operating fees for credit unions in 2026. Relief in such overhead expenses means credit unions can devote more of their own resources toward serving their communities and military members.
At the same time, DCUC emphasized that safety and soundness must remain paramount.
"We have long maintained that a strong, independent NCUA is a cornerstone of the credit union movement, and ensuring the agency retains the resources needed to fulfill its mission is absolutely critical to the continued health of our sector," Stverak said. "Even as it slims down, NCUA’s leadership has stressed that protecting the safety and soundness of credit unions – and the Share Insurance Fund that backs our members’ deposits – will remain the top priority. We wholeheartedly agree. Robust supervision and consumer protection should not be compromised by budget cuts. Fortunately, the budget proposal appears to strike an appropriate balance--even with significant reductions, the NCUA plans to continue “prudently” investing in areas like cybersecurity and fraud detection to address emerging risks.
"DCUC commends this balanced approach," continued Stverak. "We will closely monitor the implementation of these changes and work with NCUA to address any challenges that may arise for our member credit unions. We have consistently advocated for efficient use of agency funds, and we are encouraged to see NCUA adjusting its footprint in line with industry needs while still safeguarding the system’s soundness."
America's Credit Unions stated it was pleased to see the trend of continuing budget increases coming to an end.
"Credit unions have long been concerned about year-after-year budget increases at the NCUA, without any clear justification. A 20% reduction in the proposed 2026 budget is significant, and America's Credit Unions appreciates the NCUA for considering ways it can operate more efficiently. While most of the reduction correlates to reduced staffing and travel, we will continue to monitor the impacts on credit union supervision to ensure safety, soundness, and efficiency remain high," stated America's Credit Unions Chief Economist Curt Long.