Nussle to Musk: Keep NCUA Independent

America’s Credit Unions is attempting to make the case to the Trump Administration that the NCUA’s status as an independent regulator should remain intact. Is there a threat to the agency’s future and function? Possibly.

Last week, President Donald Trump signed an Executive Order establishing the Department of Government Efficiency (DOGE) as an agency focused on modernizing Federal technology and cutting government waste through a number of ways, including deregulation, merging multiple agencies into one or changing the way certain agencies are structured – potentially including the NCUA.

DOGE will be led, at least temporarily, by the wealthiest person in the world: Elon Musk. According to reports, DOGE officials want to cut up to $2 trillion from the U.S. budget. DOGE cannot legally make the cuts, but only suggest what and where to cut. Congress is the only legal entity that has the ability to make those budget changes.

In hopes the NCUA will be spared from DOGE-requested changes, Jim Nussle, president/CEO of America’s Credit Unions, sent a letter directly to Musk on Monday to lay out the reasons why the NCUA should remain the NCUA as we know it and not be merged into the FDIC.

“America’s Credit Unions strongly supports the NCUA’s current status as an independent regulator and insurer,” Nussle wrote. “Maintaining a separate, independent federal credit union regulator and insurer is critically important to the credit union system. As an independent federal agency, the NCUA can make unbiased decisions that prioritize the safety and soundness of credit unions without undue influence from political or external pressures. This autonomy ensures that regulatory actions are based on sound financial principles and the best interests of credit union members, rather than being swayed by short-term political considerations.”

The four-page letter read as a CliffNotes version of the intricacies of the NCUA’s cooperative regulatory mission and its administration of the National Credit Union Share Insurance Fund (NCUSIF).

Concerning the possibility the NCUA could be merged into the FDIC, Nussle wrote, “The structural and mission-driven differences between credit unions and banks necessitate such a regulatory framework: credit unions’ not-for-profit structure and their mission to promote thrift and provide access to credit for provident purposes are fundamentally different from other financial services providers. Unlike banks, which prioritize shareholder profits, credit unions exist to serve their members, who are also their owners. This unique member-first approach aligns credit unions’ objectives with community well-being, creating a stark contrast to the profit-driven strategies of commercial banks. This distinction underscores the need for a regulator that fully understands and supports the credit union model.”

Nussle added, “Merging the NCUA into the Federal Deposit Insurance Corporation (FDIC) would risk subjecting credit unions to a regulatory framework designed for profit-oriented banks, undermining their operational structure and member-focused mission. The FDIC’s regulatory philosophy and priorities are tailored to institutions that operate within a fundamentally different paradigm. Applying such a framework to credit unions could erode their ability to offer affordable financial products and services to underserved populations.”

Nussle also pointed out in the letter that the NCUA is funded by credit unions, their members, and not taxpayers.

Crucially, Nussle added how important it is that the NCUA remain independent since the agency does not fall under the federal appropriations process, which keeps it insulated “from unexpected lapses in funding.”

“This independence is vital for maintaining trust in the credit union system and ensuring its long-term viability,” Nussle wrote.

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Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.