ALEXANDRIA, Va.–The significant staffing reductions that took place at NCUA during 2025 can be seen in its updated 2026 budget, with its acting CFO projecting the agency’s 2027 budget will also reflect similar reductions.
The changes were part of a White House Executive Order to cut staff at independent agencies by 20%, which NCUA has done.
An update on where NCUA’s budget stands at midyear was shared by its acting CFO, Melissa Lowden, during the board meeting.
“The clear message on this slide (below) is that the NCAA’s 2026 budget is significantly lower than the 2025 level,” said Lowden. “NCUA was able to lower its budget for 2026 through two primary reductions. First, by lowering the employee head count through voluntary separations and retirements, which resulted in a smaller employee compensation budget this year. And second, by reducing non-payroll budget categories through strategic reductions to travel contracts and other budget lines.”
As a result, Lowden noted operating fees assessed credit unions in 2026 decreased 24.7%, generating estimated savings of approximately $14,500 for the average federal credit union.
Lowden said NCUA’s 2026 operating budget is approximately 20% lower than it was in 2025, with lower spending on payroll and travel the primary drivers. She said spending is projected to remain within the budgeted levels this year, despite significant inflation and higher computer hardware costs.
Other spending related to discreet capital projects for 2026 include obligations already made for items such as enhancing the MERIT system and a customer relationship management system, Lowden said.
The agency also allocated $16 million for reorganization-related projects that have not yet been spent as it finalizes plans.
‘Significant’ Change
In his comments following Lowden’s update, NCUA Chairman Kyle Hauptman called the spending reductions “significant,” saying “it’s very difficult to buck that human nature” of increased spending “but we’ve done it here today. I think we’ve been a good steward of that money.”
As for federal credit unions and the lower operating fee they have paid in 2026, Hauptman added, “Federal credit unions are paying substantially less, and I would venture that of the 4,000-something credit unions. I would bet we’re the only cost that’s gone down by that much. I bet their labor costs haven’t gone down by that much. I bet their rent, if they’re paying rent, hasn’t gone down by that much. I bet the other types of insurance credit unions have has not dropped by that much. So, it is nice to be in a position to actually deliver.”
The board meeting was likely the last for Hauptman, whose term has expired. A nomination hearing for his successor, John Crews, is set for Thursday in the Senate.
Looking Forward
Looking to 2027, Lowden said her office is “very confident” the agency will be able to stay within the reduced budget with which it is now operating.
