As of May 21, 2025, a total of 297 employees enrolled in the program. After 40 rescinded their decisions, the agency said it expects a final reduction between 243 and 257 employees. Details of the two exit options included:

• The Deferred Resignation Program (NDRP), which placed employees on paid administrative leave until December 31; and
• The Voluntary Separation Incentive Payment (NVSIP), which offered a $50,000 payment for those eligible for regular retirement by year-end.

About 72% chose NDRP, while 28% opted for NVSIP.

“Large-scale organizational change can be very difficult for organizations and staff,” Hauptman said during his opening remarks. “I greatly appreciate the patience and understanding of the NCUA staff.”

Hauptman said the program aimed to provide certainty and fairness for employees while aligning with the agency’s long-term operational needs. With the separation programs now complete, Hauptman confirmed the actual number of departures and outlined a phased approach to adapting the agency’s work.

“We’re not going to try to do the cliché of ‘doing more with less,’” he said. “We know we can’t lose more than 200 employees and think we’re going to have the same people do the same things in the same manner and at the same intervals.”

A Two-Stage Transformation

Hauptman said the agency is now in Stage 1 of its restructuring. With cost savings from the VSP not taking effect until January 2026, department heads have been instructed to identify activities that can be streamlined, delayed or eliminated.

“Many of these ideas are just better practices regardless of any headcount changes,” Hauptman said. As an example, he noted improvements in login procedures and plans to overhaul the agency’s “convoluted, wasteful time-card process.”

Stage 2, beginning in January, will involve reinvesting cost savings into modernizing the agency. “A lot of that cost-savings needs to be returned to the folks who earned it in the form of NCUA charging credit unions less money,” Hauptman said. “A great way to ensure credit unions are financially stable is to give them back some of their money.”

The NCUA is also seeking input from employees and the public via its “AskNCUA” tool to gather ideas on improving efficiency and eliminating unnecessary burdens. “We can’t afford to ignore any ideas, certainly not right now,” Hauptman said.

Leadership Void and Legal Challenge

The restructuring comes at a time of significant governance uncertainty. Following President Trump’s April dismissal of Democratic Board Members Todd Harper and Tanya Otsuka, Chairman Hauptman remains the NCUA’s sole board member.

In a lawsuit filed in U.S. District Court, Harper and Otsuka argued their removal violated the Federal Credit Union Act and undermined the NCUA’s statutory independence. “The NCUA’s structure reflects Congress’s intent to insulate Board Members from political pressure,” they stated in their May 19 court filing, opposing the government’s motion for summary judgment.

Harper further warned in a sworn declaration that “the NCUA lacks a quorum and cannot conduct the core duties Congress intended.” That includes issuing new credit union charters, adopting rules and approving complex mergers — functions critical to credit union oversight and growth.

Despite that uncertainty, Hauptman used the May 22 meeting to highlight recent achievements by NCUA staff, including the successful chartering of Heritage Hub Federal Credit Union in Houston and African Diaspora Federal Credit Union in St. Louis, the first two new federal charters of 2025.

“These groups are doing what Americans have done for over 100 years: Starting their own credit union because they obviously weren’t entirely satisfied with the current financial services marketplace,” Hauptman said, praising staff efforts to streamline the chartering process.

The NCUA also released Valwood Park Federal Credit Union from conservatorship in March, a move Hauptman called “a financial redemption story” that returned the credit union to its member-owners.

Looking Ahead

As the agency navigates staff transitions, legal questions and operational shifts, Hauptman emphasized a singular focus: “Protecting the Share Insurance Fund.”

“We still have over $2 trillion in assets to insure,” he said. “Ultimately, credit union managers and boards of directors must continue to exercise patience, flexibility and sound balance sheet management.”

The future, he said, will depend on adaptability: “Based on the excellent suggestions for improvement I have received from employees thus far, I have every reason to believe the future is bright — both for the agency and for the credit union system.”