ALEXANDRIA, Va.–All three NCUA board members used the Feb. 27 board meeting to respond to the directives coming out of the White House related to federal agencies, to acknowledge the “uncertainty” that has been created, to address the nervousness of many at the agency over their jobs, and to respond to some of the “misinformation” that can be found on public forums such as Reddit.

As reported earlier, the comments come in response to a White House order that some have described as having the potential to “change the rulemaking and interpretive legal process dramatically.” That order outlines presidential supervisory control of the entire executive branch, including the NCUA and CFPB.
According to the White House, the executive order is designed to ensure that all federal agencies, including independent agencies, are accountable to the president.

Most recently, the White House has told federal agencies to submit plans by March 13 for “large-scale reductions in force,” the first phase of an effort to drastically reduce the size of the US government. The two-phase plan would also require agencies to overhaul their organizational charts by April 14 — and submit proposals to move offices out of Washington and into “less costly parts of the country.”

The NCUA board member comments came during the first public board meeting since the directive was announced. 

‘Challenging’ For All

Citing the “flurry of executive orders affecting the federal workforce, including us,” NCUA Chairman Kyle Hauptman—overseeing his first meeting in that role—said all of the changes and uncertainty are “challenging” for numerous parties, including credit union system stakeholders and, “most definitely,” NCUA.

“All of us at NCUA, including the board, are diligently assessing how these announcements may affect the NCUA, our operations, regulatory structures and our workforce,” said Hauptman. “So, to my colleagues who may be watching (the video broadcast of the meeting), the work each of you does every day keeps our credit union system thriving and keeps our credit union members safe.”

In addition, the directives coming out of the Trump administration have also led to “loads of misinformation and rumors” in various forums, observed Hauptman, saying “there is some crazy stuff out there” in various online forums, such as Reddit.

That includes posts by people either saying they are doing so themselves or urging others to move their funds out of federally insured banks and credit unions, because deposit coverage is going to be eliminated, he said.

Even ‘Crazier’ Rumors

“And that’s not even one of the crazier ones out there,” said Hauptman. “So, let’s continue to stay focused on our mission and we the board will continue to support your work as we navigate any changes together.”

Hauptman urged any of the agency’s 1,200 employees to reach out to him with questions, reiterating that the mission of NCUA remains unchanged in protecting members and the insurance fund.

Hauptman asked for a “bit of grace” as the board and agency work through the changes coming out of the White House.

New Chair Urges Old Cooperation

Speaking to his new role, Hauptman, who is the lone Republican on the three-member board, added, “I know as chairman I can steer some priorities at the agency, but any concrete actions require board approval and that requires some measure of compromise on the part of all parties. Discussions among my colleagues have always been in good faith and in the spirit of cooperation during my tenure on the board, so (in the) give and take none of us gets everything we want…I look forward to continuing that collaboration with my board colleagues now that I’m chair.”

Harper: NCUA Staff Is ‘Protecting Taxpayers’

Now Board Member Todd Harper echoed many of the points made by Hauptman and praised the work being done by NCUA’s employees, including in “protecting taxpayers.”

In comments aimed at members and consumers, Harper also reminded that NCUSIF insurance remains in place and covers deposits to $250,000 per account. 

“That hasn’t changed that’s not going to change and we’re not going to take our eyes off of that at any point in time,” Harper said.

Otsuka: ‘Deeply Troubled’
Board Member Tanya Otsuka said she has been “deeply troubled by the attacks on the federal workforce, who are here to serve the American people.”

“Speaking directly to my NCUA colleagues, I want you to know that as a former career public service myself, I have utmost respect and admiration for the work that you do at the NCUA,” Otsuka continued. “A lot of you have been in federal service for your entire careers. Many of you are veterans. Many of you have private sector experience as well. So, I just want to reiterate my reverence for the work that you do and the dedication with which you do it. Without you all we would not have a strong examination program, questions from credit unions and consumers alike would go unanswered, we wouldn’t be able to charter new credit unions or process field of membership applications or provide technical assistance or issue guidance to the credit union industry. The list goes on, so thank you.”