He noted current and proposed regulations will be reviewed to determine if they are in line with the President's position on government regulation, and that existing regulations could be changed or eliminated.

“The order is consistent with previous ones impacting other financial regulators and could be the first step in moving to merge NCUA into the Treasury Department,” he said. “State regulators need to monitor the implementation of the order as it could lead to numerous conversions of credit unions from federal to state charter as well as from federally to privately insured.”

But Rick Metsger, who served as an NCUA board member and chair from 2013 to 2017, said merging the NCUA and FDIC, which has been pondered in the past, would not be a good idea for the credit union community or the country on multiple fronts.

“It would be ironic, however, that given the long history of complaining by the trade groups that the NCUA budget was unnecessarily large, and regulations over-reaching, that the administration might believe it is answering their appeal by eliminating NCUA as a separate entity,” Metsger said. “If that happens, where are those members of Congress who have stood by the credit union system, and will they defend it now.”

Dennis Dollar, who served as an NCUA board member and chair from 1997 to 2004, predicted the Executive Order will be worked out in the courts or Congress will clarify just how independent the independent agencies will be going forward.

“That said, President Trump is obviously pushing back on that historical designation as he is on a wide range of governmental precedents and longstanding interpretations. His intention obviously is to use the mandate of his election in order to change the federal government as we have come to know it,” Dollar said. “That is not necessarily a bad exercise for our extremely bloated federal government to go through from time to time. There will be give and take as always in Washington, but challenges to the status quo can be healthy and hopefully bring about better government once things settle in. The results are, of course, yet to be seen.”

The League of Credit Unions & Affiliates President/CEO Samantha Beeler sees the President’s executive order as an opportunity to reset and reshape the regulatory landscape.

“For the better part of a decade, we have continued to regulate through the rearview mirror — still writing regulations for Dodd-Frank instead of evolving with the rapidly changing technologies in financial services. It is time for a thoughtful and nimble regulatory framework — one not easily swayed by the political landscape, but rather focused on the future of financial services,” Beeler said. “This moment presents the opportunity to strike the appropriate balance between necessary oversight and the flexibility credit unions need to grow and succeed. Credit unions were once the result of innovation in the financial services landscape, and we must lean into that same sentiment now and advocate for an environment that allows our members to thrive.”

Troy Stang, president/CEO of the GoWest Credit Union Association, views the President’s order as a clarification of the NCUA’s mission.

“GoWest acknowledges the administration’s focus on ensuring accountability and oversight across federal independent agencies. GoWest also recognizes that independent agencies, such as the National Credit Union Administration, were established to fulfill specific statutory missions,” Stang said. "For the NCUA, this mission includes protecting the share insurance fund and ensuring the safety and soundness of the nation’s federally insured credit unions. The executive order clarifies that these missions will continue under presidential oversight.”

Patty Corkery, president/CEO of the Michigan Credit Union League, is concerned about melding the independent agencies under the eye of the executive branch.

“I believe that some or a significant portion of the executive order will be litigated by the courts for a final decision but, I am a proponent of the NCUA as an independent agency separate and apart from the Treasury Department or other financial services agencies,” she said.

Cornerstone Credit Union League Caroline Willard believes it is imperative to thoroughly examine the constitutional and operational implications of the Executive Order.

“The credit union movement has long valued the independence of the National Credit Union Administration as a regulatory body dedicated to ensuring the safety and soundness of our industry. Any shift that alters the structure of independent federal agencies raises important questions about governance, oversight and regulatory stability,” Willard said. “While we recognize the administration’s desire for streamlined accountability, it is crucial to carefully assess the constitutional and operational implications of such an order to ensure it aligns with the long-term best interests of credit unions and their members.”

Jeff Olson, president/CEO of the Dakotas Credit Union Association, said President Trump’s Executive Order could lead to greater transparency and accountability in the agency’s budget process and regulatory proposals.

“For years, credit unions have expressed concerns that the NCUA Board wields too much discretion over the budget with minimal congressional or industry oversight. This lack of accountability has fueled continued budget growth and future assessments,” Olson said. “The reality is that credit unions worry every year that the NCUA’s budget expands beyond necessity, leading to higher operating fees and assessments that ultimately impact our members. We should welcome any effort that encourages better efficiency and cost controls.”

Greater oversight, he added, may encourage a more conservative approach to fund management, potentially mitigating the risk of unnecessary premium assessments.

Wisconsin Credit Union League President/CEO Sarah Wainscott said cooperatives appreciate transparency and a focus on fiscal responsibility to benefit Wisconsinites.

“We are eager for further direction on this matter,” she said. “We urge the administration to work with independent federal regulators on providing clear-cut, reliable, and consistent regulation and oversight for our credit unions, so that they can operate with confidence.”