9.5% increase for NCUA’s 2024 budget, funding mechanisms up for action next Thursday

The 2024-2025 budget of credit unions’ federal regulator, its liquidity facility for credit unions, and budgetary funding mechanisms make up the action agenda for the Dec. 14 meeting of the agency’s board.

The National Credit Union Administration (NCUA) Board is considering a total budget of $394.51 million, up 9.5% from the 2023 budget total of $360.4 million. The agency budget has three components: the operating budget, proposed at $382.1 million for 2024, up 11% from 2023; capital budget, proposed at $7.3 million for 2024, down 35.6% from 2023; and the National Credit Union Share Insurance Fund (NCUSIF) administration budget, proposed at $5.1 million for 2024, up 3.6% from 2023.

Federal credit unions (FCUs) are assessed operating fees to fund a portion of the NCUA operating budget. The other major income portion to that fund comes from the NCUSIF, which through the “overhead transfer rate” transfers a share of its annual earnings to cover “insurance-related costs” to the agency. Agency staff this fall told the board that FCU operating fees were expected to fund about 37.6% of the operating budget, with the remainder coming from the OTR.

The National Credit Union Administration (NCUA) Board meeting is scheduled for 10 a.m. The agenda includes:

  • NCUA operating fee schedule methodology
  • NCUA’s 2024-2025 budget
  • Request for comment, NCUA overhead transfer rate (OTR) methodology
  • Central Liquidity Facility (CLF) 2024 budget

In 2025, the agency expects to raise its total budget about 10% to $433.6 million.

Regarding operating fees, a proposal issued in June would increase the threshold below which federal credit unions (FCUs) are exempt from paying an operating fee from $1 million to $2 million; it would also establish a process to update the exemption threshold in future years based on the credit union system’s annual asset growth. The comment period on the proposal closed Sept. 5.

The shows the NCUA Board will act on the CLF budget in its capacity as the board of the CLF. This budget is not detailed in the agency’s 2024-2025 budget justification.

The NCUA Board’s public meetings can be viewed in person and via webcast.

Agenda for Dec. 14 NCUA Board open meeting

NCUA budget details