November 17, 2023

NAFCU’s Long testifies on ‘unsustainable’ NCUA budget increases

NAFCUThe NCUA held a public hearing for its proposed 2024-2025 budget Thursday. For 2024, the agency has proposed an increase of 9.5 percent from 2023 and an increase of 9.9 percent from the 2024 proposed budget for 2025. During the hearing, NAFCU Vice President of Research and Chief Economist Curt Long urged the agency to be more efficient.

Long said the trend of substantially increased budgets is “unsustainable” and called on the NCUA to “restrain its spending going forward and look for cost savings wherever possible.” Additionally, he requested the agency “embrace the importance of cost-efficiency and prudent financial management by cutting unnecessary budget items like the addition of dozens of new examination staff.”

In his written comments, Long called attention to the operating fee increases for credit unions. He noted that credit unions are concerned about sharp increases to the fee with margins tightening.

Additionally, CUNA Chief Economist Mike Schenk said the association supports adding some positions to the agency’s staff, but he expressed concerns with the “level and focus of proposed additional staff, including regional specialists to focus on consumer financial protection.”

Remarks were also provided by speakers from GoWest Credit Union Association, the Virginia Credit Union League, and the National Association of State Credit Union Supervisors.

NAFCU will continue to engage the NCUA on credit union priorities and ensure credit union voices are heard in Washington.