NCUA official seal. Credit/NCUA
When President Donald Trump signed an Executive Order establishing the Department of Government Efficiency (DOGE) in January to cut 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 and FDIC, many credit union leaders became worried that the agencies would lose their independence.
President Trump wants all potential rules and regulations to run through the Executive Branch first to gage if the rules follow the “policies and priorities” of the President.
CU Times conducted a poll on LinkedIn asking readers the following: “As it relates to President Trump’s Executive Order, should federal independent agencies, including the NCUA, report to the Executive Branch?”
According to the results, 290 credit union officials participated in the poll. Of those votes, 82% voted no and 18% voted yes.
The results oddly mirrored recent comments by Trump’s own Treasury Secretary, Scott Bessent.
Late last week, Bessent stated that he does not support consolidating federal financial regulators, reinforcing concerns over the potential restructuring of the NCUA.
“We need our financial regulators singing in unison from the same song sheet,” Bessent said, according to a report from the Wall Street Journal. “To be clear, this does not mean consolidation of agencies, but coordination via Treasury, such that our regulators work in parallel with each other and industry.”
Bessent’s comments were delivered during a speech he gave last Thursday at The Economic Club of New York.
America’s Credit Unions has been actively engaging with Bessent, Office of Management and Budget Associate Director Mark Calabria, and DOGE to advocate for keeping the NCUA as the sole independent regulator of credit unions. With DOGE officials reportedly seeking $2 trillion in budget cuts, concerns have arisen that the NCUA could be merged into the FDIC, fundamentally altering its role.
In January, Jim Nussle, President/CEO of America’s Credit Unions, sent a letter to DOGE’s temporary head, Elon Musk, arguing that merging the NCUA into the FDIC would undermine the credit union model. “Maintaining a separate, independent federal credit union regulator and insurer is critically important to the credit union system,” Nussle wrote. “As an independent agency, the NCUA ensures decisions are made based on sound financial principles rather than short-term political pressures.”
Nussle emphasized the fundamental differences between credit unions and banks, noting that credit unions are not-for-profit institutions serving members, whereas banks prioritize shareholder profits. He warned that applying bank-focused regulations could erode credit unions' ability to serve their members effectively.
With the NCUA funded by credit unions and their members, not taxpayers, Nussle argued that its independence protects against budget shortfalls and political interference. Credit union advocates continue to urge lawmakers to reject any attempts to dismantle the NCUA’s regulatory autonomy.
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Michael Ogden
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.
