NCUA Releases 2026-27 Draft Budget Showing Significant Reduction

ALEXANDRIA, Va.–NCUA has released its 2026–2027 draft budget showing a significant budget reduction.

The proposed combined 2026 budget is $313.8 million, a 20.6% decrease from the 2025 budget. The agency said there are three main drivers contributing to the reduction in proposed 2026 budget levels: a 23.0% reduction to NCUA staffing levels, a 34.1% reduction to contracted services budgets, and a 13.4% reduction in budgets for employee travel.

More than 250 people have taken voluntary separation agreements from NCUA this year following a Trump administration order that it reduce its staff by 20%. The payouts to those employees hit the 2025 budget; NCUA has been saying the reductions would begin to be seen in 2026. The reductions reflect approximately $75 million in savings, NCUA has said. 

As the CU Daily reported here, during the agency’s September board meeting, Chairman Kyle Hauptman said there are going to be some “wow” reactions from credit unions in 2026 when they receive their “bill” from the agency—and that’s because it’s going to be markedly less.

Three Reasons Cited

NCUA said the 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 proposed budget summary and detailed budget justifications can be found on the Budget and Supplementary Materials page(Opens new window)  on NCUA’s website.

NCUA has also submitted the proposed budget for publication in the Federal Register, and the comment period remains open until Oct. 24.

DCUC: ‘Prudent Right-Sizing’

In response to release of the proposed budget, Jason Stverak, chief advocacy office with the Defense CU Council, said, “The DCUC applauds the National Credit Union Administration (NCUA) for proposing a prudent right-sizing of its budget and workforce in the 2026–2027 draft. 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 said DCUC was happy to see NCUA said the safety of the NCUSIF will remain paramount.

“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,” Stverak said in a statement. “DCUC commends this balanced approach. 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.”

How to Comment

Submit comments on Docket # NCUA-2025-0543 here by Oct. 24.

Comments should provide specific, actionable recommendations related to NCUA’s staff draft budget, NCUA said.