NCUA Board Briefed on Regulatory Updates, Share Insurance Fund & Mid-Year Budget

CrossState attended the NCUA’s Board meeting via livestream on Wednesday, during which Chairman Kyle Hauptman was briefed on the agency’s ongoing regulatory activities, the Share Insurance Fund, and a mid-year budget update. Here are the highlights:

Regulatory Update

The Board received a staff update on the NCUA’s regulatory work for 2026, focusing on the agency’s multiyear Deregulation Project. Staff noted that the NCUA expects more than 50 rulemaking, guidance, and policy actions across the agency and has already issued 31 proposed rules under phase one of the project. Staff went into detail on several phase one deregulation examples, including advertising requirements, post-election training for new directors, nondiscrimination requirements, and third-party servicing of indirect vehicle loans. Staff also discussed other priority rulemakings and recent final rules, including the interim final rule on federal credit union (FCU) non-interest charges and fees and the final rule prohibiting the use of reputation risk in supervision.

Share Insurance Fund Quarterly Briefing

The Board was briefed on the latest SIF financial performance. The SIF’s net income for the first quarter was $105 million, a decrease of $8.6 relative to the previous quarter. The Fund’s equity ratio was 1.30% at the end of 2025 and is projected to be 1.27% when it is calculated at the end of Q2. The percentage of insured shares held by credit unions with a CAMELS code of 3, 4, or 5 slightly decreased during the quarter.

2026 Mid-Year Budget Update

The Board received an update on the 2026 budget through May. The NCUA’s total approved budget—and the NCUA’s spending thus far in 2026—is significantly lower than 2025. This is in line with the 2026 total approved budget (including carryover), which reflects a reduction of $70.8 million from 2025. The NCUA has seen a reduction in budget in the three major budget categories: operating budget, capital expenses, and SIF administrative expenses. It is estimated that the 24.7% decrease in operating fees in 2026 has generated estimated savings of approximately $14,500 for the average federal credit union. The NCUA anticipates that the 2026 budget will be within the approved spending budget for 2026.