TO: NCUA Board in its capacity as the CLF Board
FROM:
Acting President Matthew J. Biliouris
Central Liquidity Facility
DATE: January 15, 2026
SUBJ: 2026-2027 CLF Budget
DATE ACTION REQUESTED: January 21, 2026
OTHER OFFICES CONSULTED: Office of the Executive Director and Office of the Chief
Financial Officer
BUDGET IMPACT, IF ANY: The requested action is the proposed CLF budget of
$2,031,831 for 2026 and $2,092,786 for 2027.
SUBMITTED TO INSPECTOR GENERAL FOR REVIEW: Yes
RESPONSIBLE STAFF MEMBERS: Matthew J. Biliouris, Acting CLF President; Qing Yan, CLF
Accountant
SUMMARY: The CLF was created by Congress in the National Credit Union Central Liquidity Facility Act.1 The CLF is an instrumentality of the United States within the NCUA owned by its member credit unions and managed by the NCUA Board, in its capacity as the CLF Board.2 The purpose of the CLF is to improve the general financial stability by providing member credit unions with a source of loans to meet their liquidity needs and thereby encourage savings, support consumer and mortgage lending, and provide basic financial resources to all segments of the economy.
Among various authorities, the NCUA Board, acting in its capacity as the CLF Board, has the authority to determine expenses and enter into obligations in operating the CLF.
The NCUA Board, in its capacity as the CLF Board, must approve the CLF’s budget as this authority has not been delegated. The CLF needs to be ready to provide support for the financial stability of member credit unions by providing liquidity for short-term, seasonal, and protracted needs. As such, the CLF budget request must consider the potential for surges in both applications for membership and the processing of liquidity advances while maintaining routine operations and audit support. In addition, the CLF needs to maintain a robust membership whose capital provides a borrowing base that can be used to provide assistance to the National Credit Union Share Insurance Fund should a system-wide liquidity event occur.
The attached 2026-2027 Budget Request represents the CLF estimated annual needs for 2026 and 2027. As shown in the summary table below, the 2026-2027 CLF budget is $2,031,831 and $2,092,786 respectively.
| Budget Cost Category | 2025 Board Approved Budget | 2026 Proposed Budget | 2025-2026 Change | Change Percent | 2027 Proposed Budget | 2026-2027 Change | Change Percent |
|---|---|---|---|---|---|---|---|
| Employee Compensation | 2,149,978 | 1,907,196 | (242,782) | -11.3% | 1,964,412 | 57,216 | 3.0% |
| CLF Salaries | 1,342,716 | 1,171,697 | (171,019) | -12.7% | 1,206,848 | 35,151 | 3.0% |
| CLF Benefits | 535,327 | 505,965 | (29,362) | -5.5% | 521,144 | 15,179 | 3.0% |
| Salaries (allocation of NCUA Board & Central Office) | 271,935 | 229,534 | (42,401) | -15.6% | 236,420 | 6,886 | 3.0% |
| Travel | 26,300 | 10,000 | (16,300) | -62.0% | 10,300 | 300 | 3.0% |
| Rent/Comm/Ulities | 43,563 | 31,663 | (11,900) | -27.3% | 32,613 | 950 | 3.0% |
| Administrative | 3,762 | 2,272 | (1,490) | -39.6% | 2,340 | 68 | 3.0% |
| Contracted Services | 84,260 | 80,700 | (3,560) | -4.2% | 83,121 | 2,421 | 3.0% |
| Total | $2,307,863 | $2,031,831 | (276,032) | -12.0% | $2,092,786 | 60,955 | 3.0% |
ACTION REQUESTED: Pursuant to Delegation of Authority General 5A, Board approval, in its capacity as the CLF Board, of the 2026-2027 CLF Budget as detailed in this memorandum and in the attached 2026-2027 CLF Budget Justification.
ATTACHMENT: 2026-2027 Central Liquidity Facility Staff Draft Budget Justification.