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NCUA Board approves 7 percent budget increase
The NCUA Board held its December meeting Thursday, during which it unanimously approved the final budget for 2024 that incorporated some of NAFCU’s recommendations. The 2024 budget will be 7 percent higher than 2023 and includes a 16.36 percent increase in operating fees for credit unions. The original proposed budget included a 19.61 percent increase in operating fees and was 9.5 percent higher than this year.
NAFCU met with all three NCUA Board members to discuss the budget ahead of the meeting. The association also provided public comments to the agency where it urged the NCUA to cut costs and lower the operating fee for credit unions. NAFCU’s Chief Economist and Vice President of Research Curt Long called the budget increases “unsustainable” and encouraged the agency to prioritize essential agency functions.
In addition, the NCUA Board unanimously approved publication of a final notice to increase the operating fee exemption threshold from $1 million in assets to $2 million and increase the fee exemption asset threshold in the future by the aggregate rate of growth for credit union assets. Although NAFCU had sought a higher small credit union exemption threshold, the association is supported of the revision to adjust the future threshold by the rate of growth for credit union assets.
The board also approved issuing a request for comment regarding a revised OTR methodology based on feedback from a 2016 request for comment, as well as the proposed 2024 Central Liquidity Facility budget of $2,199,065.
NAFCU will continue to engage the NCUA on credit union priorities. Stay tuned to NAFCU Today for the latest out of Washington.