WASHINGTON, DC (November 5, 2025) |
Today, the Defense Credit Union Council (DCUC) provided live testimony during the National Credit Union Administration’s (NCUA) proposed budget hearing for 2026– 2027. Present to testify on DCUC’s behalf was Jason Stverak, DCUC Chief Advocacy Officer.
“Even in times of streamlining, the question should be where reductions will be made, as opposed to how much the reductions will be,” Stverak stated. DCUC commended the NCUA for presenting a more streamlined budget that reduces costs for credit unions funding the agency’s operations and the Share Insurance Fund, but urged the Board to take a more targeted approach in several key areas.
Supervisory Expenses
DCUC noted that with fewer federally insured credit unions—163 fewer as of June 30, 2025— there should be a proportional decrease in supervisory expenses. “This change alone saves time and money and should be reflected in the budget,” Stverak said.
Examination Frequency
DCUC encouraged the NCUA to extend the time between supervisory examinations for CAMELS 1 and 2 credit unions, citing potential savings and the agency’s ongoing technology investments. “NCUA’s recent investments in technology and process improvements should enable longer examination cycles for qualifying credit unions,” Stverak explained, referencing MERIT—the Modern Examination and Risk Identification Tool—into which the NCUA has invested $1.7 million in 2025 and an additional proposed $2.9 million in 2026.
Travel and Training Expenses
DCUC called for further reductions in employee and examiner travel costs. “Given the agency’s 23 percent staff reduction and increased reliance on digital examination tools such as MERIT— which will receive an additional $2.9 million—DCUC believes more supervisory interactions can
be conducted virtually.” DCUC also recommended halving the $1.1 million budgeted for state examiner travel, noting that “virtual training continues to prove effective.”
Office of External Affairs and Communications (OEAC)
DCUC also expressed concern over an 82 percent proposed cut to OEAC staffing and resources. “Given the agency’s ongoing transformation, this is the wrong time to diminish a function that ensures open communication with industry stakeholders, Congress, and other regulators,” Stverak warned. DCUC urged the NCUA to “preserve and prioritize OEAC as it finalizes its budget, further reorganizes, and fills vacancies.”
Office of Credit Union Resources and Expansion (CURE)
DCUC’s testimony also highlighted concerns about a 30 percent budget reduction and 22 percent staff reduction for CURE. “As CURE manages the Community Development Revolving Loan Fund programs and training opportunities, reductions in staffing and funding could slow these processes and limit credit unions’ access to necessary resources.”
Office of Consumer Financial Protection (OCFP)
Stverak concluded DCUC’s live testimony by urging the NCUA to rebalance its reductions across divisions, suggesting deeper cuts to the OCFP. “We are concerned with the proposed OCFP budget decrease of only 28 percent, given the significant budget and staffing reductions at the Consumer Financial Protection Bureau (CFPB),” Stverak stated, recommending that the agency:
- Focus its consumer protection resources on higher-risk institutions;
- Direct resources to less costly financial education initiatives; and
- Ensure proportional consumer compliance supervision for credit unions with under $10 billion in assets.
“DCUC appreciates the NCUA’s collaboration and commitment to efficiency, transparency, and mission alignment. We thank the Board for the opportunity to provide this feedback and look forward to continued outreach from the agency,” said Stverak.