WASHINGTON—NCUA is bracing for a significant shift as it undergoes Trump-mandated budget cuts, including a 20% reduction in force expected by year-end, says Ann Petros, vice president of policy engagement and credit union operations at America’s Credit Unions.
Petros, during a call with the media Monday, noted the cuts are already being felt through the loss of supervisory examiners and other examiners across several regions, which could strain the agency’s ability to maintain a strong examiner force.
“We will see some institutional knowledge leave the agency,” she said, adding that an eventual lifting of a hiring freeze should allow NCUA to rebuild its capacity.
Despite the disruption, Petros stressed that NCUA’s core functions remain intact.
“Business is, for the most part, moving forward and operating as usual,” she said, pointing out that mandated offices and responsibilities will continue regardless of how many board members are seated.
What remains uncertain, Petros acknowledged, is how the agency will approach discretionary activities, such as rulemakings, while it operates with only one board member.
“Certain decisions and functions have to take place,” she said. “But how the board handles other actions remains to be seen.”