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Trump’s Workforce Cuts Hit NCUA: What’s Changing, What’s Next

Show Notes

In this episode of With Flying Colors, Mark Treichel breaks down the biggest NCUA update in years — a Trump-era Executive Order has triggered a 20% voluntary staff reduction at the agency.

This May 22 board briefing outlines how the NCUA will operate with fewer people, a tighter budget, and a restructured exam program — all while staying focused on its core mission.

1. 20% Staff Reduction by Year-End
   NCUA is cutting 250 positions — driven by Executive Order 14210.
2. No Layoffs, All Voluntary
   Staff could opt for paid leave (NDRP) or a $50K incentive (NVSIP).
3. Program Exceeded Target
   297 enrolled; around 250 will actually depart — above the 217 needed.
4. HQ Was Hit Hardest
   30% of HQ staff enrolled vs. 20% in the regions — right-sizing in progress.
5. Hiring Freeze Through July 15
   Replacements limited to 1 hire for every 4 departures, only in top-priority roles.
6. Realignment Likely
   Signals point to fewer departments, streamlined reporting, and a leaner structure.
7. Extended Exam Cycles
   Well-run credit unions get more time between exams — up to 24 months in some cases.
8. $75M in Budget Savings Expected in 2026
   Minimal 2025 savings due to admin leave; big gains next year.
9. Agency Admits: 'Less with Less'
   NCUA is trimming low-value work and asking staff for smarter, simpler workflows.
10. Tech + Targeted Hiring Ahead
    Come 2026, investments in automation and skilled examiners are planned.