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


Trump’s Workforce Cuts Hit NCUA — Here’s What’s Changing


President Trump’s Executive Order 14210 is reshaping the federal workforce — and that includes the NCUA. In a May 22, 2025, board briefing, the agency laid out a sweeping Voluntary Separation Program (VSP) that will shrink its workforce by 20% and trigger changes that will ripple through the credit union system.

In the latest episode of With Flying Colors, I break down the top 10 takeaways from the briefing — and why they matter for your next exam and beyond.


🔟 Top 10 Takeaways from NCUA’s VSP Briefing


1. 20% Staff Reduction by December 2025Approximately 250 employees will exit the agency under the voluntary program.


2. No Layoffs — Just Incentives Staff could choose between a $50K retirement incentive or paid administrative leave through year-end.


3. Goal Surpassed in Round One: Enrollment exceeded expectations. Only one round of departures was needed.


4. Headquarters Was Hit HardOver 30% of Central Office staff are leaving, compared to about 20% in the field.


5. Hiring Freeze in PlaceNo permanent hiring until at least July 15, and even then, only 1 hire for every 4 exits.


6. Internal Reorganization is Signaled. References to “23 departments at the time” and calls to consolidate functions strongly suggest departmental mergers or realignment.


7. Exam Flexibility Expanded. Well-run credit unions will now be examined less frequently — some only every 20–24 months.


8. $75 Million in Projected Savings for 2026. Big budget relief is coming next year, although most 2025 costs are still on the books.


9. NCUA Will “Do Less With Less.”The agency is cutting low-value work and rethinking workflows, rather than overextending remaining staff.


10. Technology & Talent Investments Ahead. Savings in 2026 may fund improved automation, tools, and strategic rehiring — especially in the exam workforce.


🧠 Why This Matters for Credit Unions

This is more than a staffing shift — it's a regulatory transformation. Credit unions can expect:

  • Fewer in-person exams

  • Delayed exam cycles

  • A leaner, potentially decentralized NCUA

  • More risk-based prioritization


And this is just the beginning.

In my next podcast episode, I’ll delve into the clues indicating departmental consolidation and structural realignment within the agency.


 
 
 

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