Off the Record, On the Issues with John

NCUA budget cuts; CFPB rule blocked; and a GAC scholarship opportunity for Dakota credit union leaders.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

NCUA Holds Hearing on Proposed 2026–2027 Budget
The National Credit Union Administration (NCUA) held its public budget hearing yesterday to review the agency’s proposed budget for 2026–2027. The draft plan outlines a significant restructuring of the agency’s operations, with an emphasis on efficiency, reduced staffing, and greater use of technology.

According to the NCUA’s staff proposal, the 2026 budget totals $313.8 million, representing a 25 percent reduction from the level previously approved for that year and a 20 percent decrease compared to 2025. The cuts are largely driven by a 23 percent reduction in staff, lower travel costs, and decreased reliance on contracted services.

The agency’s 2027 budget is projected at $344.7 million, an increase of roughly 10 percent from 2026, reflecting inflation adjustments and continued investment in digital systems and organizational restructuring.
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Key elements of the proposal include:

• Staffing: Reduction from 1,255 to 967 positions through voluntary separations and attrition.
• Technology: A $10 million investment in modernization, including enhancements to the MERIT examination system.
• Travel and Training: Cuts of 13 percent overall, with more examinations and meetings to be conducted virtually.
• CURE and OEAC Offices: Notable funding reductions to the Office of Credit Union Resources and Expansion and the Office of External Affairs and Communications.

During the hearing, industry organizations Americas Credit Unions, Go West, Defense Credit Union Council and others shared feedback on the proposed budget, balancing efficiency goals with the need for clear communication and continued support for community development initiatives.

The NCUA Board will review all public comments before voting on a final version of the 2026–2027 budget later this year.

Board Briefing(Opens new window) | Budget Justification
 
Judge Blocks CFPB’s Personal Financial Data Rule Amid New Rulemakings
A federal judge in the Eastern District of Kentucky has issued a preliminary injunction halting enforcement of the Consumer Financial Protection Bureau’s (CFPB) Personal Financial Data Rights Rule, a regulation stemming from Section 1033 of the Dodd-Frank Act that aimed to expand consumer control over financial data. The 2024 rule finalized under the previous administration required financial institutions with more than $850 million in assets to share consumer data with authorized third parties upon request. The new administration, calling the rule “unlawful and overly burdensome,” has since initiated an advance notice of proposed rulemaking to revisit its framework. Industry groups, including America’s Credit Unions, welcomed the court’s decision, citing compliance uncertainty and disproportionate regulatory strain on credit unions. The organization noted that the injunction provides clarity while the CFPB revises the rule to better balance data access, consumer privacy, and operational feasibility.
 
The Roger Heacock Scholarship: A Gateway to the GAC Experience
The Dakota Credit Union Association is proud to announce the Roger Heacock Scholarship, a unique opportunity for two lucky Dakotans. This scholarship will allow the recipients to attend the Governmental Affairs Conference (GAC) in Washington, D.C., the largest annual credit union event of the year, held March 1-5. Hosted by America's Credit Unions, the GAC gathers thousands of industry leaders, advocates, and policymakers to discuss and influence the future of credit unions. Assistance varies each year and is based on the number of qualified applicants and funds available. This year, we are excited to be offering scholarships to attend the 2026 GAC for a stipend between $2,500 and $3,500/each. Scholarship monies allocated to applicants may reach, but not exceed, the cost of attending the conference or event. This is a rare chance to represent the Dakotas on a national stage and shape the future of financial services while participating in one of the most impactful gatherings in the credit union movement. Get more information and apply here. 

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For more information or to share your perspectives, feel free to contact me.  ​