October 27, 2023

NCUA proposes 9.5% budget increase for 2024-25; NAFCU updates fee calculator

NCUAThe NCUA Thursday released its proposed budget for 2024-2025. The agency has proposed a $394.5 million budget for 2024, an increase of 9.5 percent from 2023. Additionally, the NCUA proposed a budget of $433.6 million for 2025, an increase of 9.9 percent from the 2024 proposed budget.

“NAFCU and credit unions support fiscal responsibility. It’s only natural that the agency overseeing credit unions follows the same principle; however, the NCUA, once again, has proposed unreasonable increases for its 2024-2025 budgets,” said NAFCU President and CEO Dan Berger. “With a proposed increase of 9.5 percent over 2023, the agency needs to rein in unnecessary spending. At a time of such economic uncertainly, the NCUA shouldn't be taking away money from credit unions and the 138 million members they serve. NAFCU will continue to call on the NCUA to find cost saving measures and hold the agency accountable.”

NAFCU also released its updated NCUA Operating Fee Calculator for 2024 based on the proposed budget. The calculator allows credit unions to find out how the NCUA’s budget increase will affect their bottom lines. The NCUA’s budget justification noted that the calculated Operating Fee for 2024 increases almost 20 percent compared to the rate in 2023.

Of note, the proposed 2024 capital budget is $7.3 million, $4 million lower than the 2023 budget.

Three main factors contribute to the agency’s proposed increase for 2024:

·       a net increase of 28 positions, or 2.3 percent, compared to the agency’s 2023 staffing level;

·       an increase of $18.2 million for current employee compensation in 2024 compared to 2023; and

·       an increase of $10.7 million in contracted services for 2024.

Comments on the proposed budget are due Nov. 21; NAFCU will submit comments and attend the Nov. 16 budget briefing, which will be streamed live on the agency's website. NAFCU has long supported public budget briefings to help ensure transparency and accountability in the budgeting process and has urged the agency to remain committed to eliminating inefficiencies and redundancies in its operations.

Stay tuned to NAFCU Today for updates.