NCUA Board Member Tanya F. Otsuka during a meeting of the NCUA Board.
As Prepared for Delivery on December 17, 2024
Thank you, Eugene, Melissa, and Jim, for the presentation and more importantly, for seeing us through the budget process for the last six months. Every year your office embarks on this exercise, and I know it’s not easy. Additionally, I would like to thank the office of the Executive Director and the Chairman’s and Vice Chairman’s office for their collaboration in getting us to this final product.
The final budget for 2025 and 2026 represents investments in our agency’s mission, workforce, infrastructure, and ultimately our system of cooperative credit.
The additional staff and technological investments into the examination and chartering software helps the NCUA better protect the National Credit Union Share Insurance Fund and our members.
For example, the new positions requested by ONES—our office that examines the largest and most complex credit unions—will allow us to better support credit unions in the $5-10 billion range as they prepare for more robust examinations. Ensuring credit unions this size are safe and sound is paramount to the health of the Share Insurance Fund.
At the public budget hearing, I mentioned the work we need to do further build our consumer compliance program. The additional staff in the Office of Consumer Financial Protection is a step in that direction. As I have said, and will continue to say, the NCUA cannot do its job as a safety-and-soundness regulator if we overlook consumer compliance.
As Eugene has pointed out, we have managed to make investments and fund much needed expenditures, while still requiring a lower percentage in fees from credit unions. Credit unions of all sizes, assuming growth remained stable, will pay a lower operating fee to the NCUA next year than they did in 2024.
This is the direct result of our prudent spending in prior years and the surplus we can now use to lower our overall budget cost. This is a win for credit unions.
It is important the agency is a good steward of the funds we receive to protect the credit union system and insure share accounts. And the NCUA can only do its job as a strong, effective, and independent regulator if we make the necessary investments in our infrastructure and staff.
This budget strikes the right balance, and I plan to support it.
Thank you.