Credit Union Exam Solutions Presents With Flying Colors What NCUA’s 23% Staff Cuts Really Mean for Credit Unions
Oct 7, 2025
The discussion dives into NCUA's drastic budget proposal, revealing a 23% staff cut, the smallest workforce in over two decades. Mark highlights the implications of a hiring freeze and voluntary separations, which are causing exam disruptions. The looming risk of fewer but more intense examinations raises concerns for credit unions. With a $10 million transformation fund on the table, there's hope for tech upgrades, yet long-term challenges persist. Tune in for insights on governance uncertainties and the balance between short-term relief and potential future losses.
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Historic Staff Reduction
- NCUA's proposed 2026 budget cuts staff to 967 FTEs, the smallest workforce in over 20 years.
- The draft reduces total spending by roughly 20% versus 2025 and centers on a 23% staff cut.
Three Budget Drivers
- The budget drivers are 23% staff cuts, a 34% contractor reduction, and a 13% travel cut.
- The only increase is capital spending for technology and reorganization support.
HR Buyouts Causing Promotion Churn
- Mark reports a rumor that many supervisory HR staff took buyouts, creating temporary promotions and churn.
- He explains the promotion freeze forces 120-day cycles that create chaos in staffing and exams.