NCUA Board Member Rodney E. Hood Statement on the 2023 Mid-Session Budget

As Prepared for Delivery on July 20, 2023

I think it's great that we are considering the midsession budget today, something that this Board customarily considers around July of every year. It is important to update the public, including the credit unions that fund the agency’s operations, on the status of NCUA’s budget.

In today’s action, the Board has agreed to add four new positions in cybersecurity and two new positions in the Office of Credit Union Resource and Expansion. Staff gave significant justifications for these new positions to the Board. I appreciate the Vice Chairman’s office work to streamline the process in CURE in addition to adding these new positions.

• Eugene, can you discuss how some of CURE’s workflows will be streamlined based on today’s agreement?
• Also, Eugene, and for the record, is it typical to add this many positions at the midsession budget?
• Thank you. I want everyone to know that staff is drafting the 2024 budget right now as we speak. At the midyear point, what options do we expect the Board to have when we consider the 2024 budget?
• During a previous midsession budget, Eugene, we discussed the large amount of funds in the cash operating fund, which ultimately led to the NCUA issuing a refund to federal credit unions. Can you discuss the cash operating fund since that refund?
• How much more in income do we expect to make this year because of the increase in interest rates relative to last year’s baseline?
• Thank you. What do we plan to do with this extra income?

Earlier this week, the NCUA hosted the International Credit Union Regulators’ Network at our agency in Alexandria. I want you all to know that NCUA is considered a beacon of light and quite informative as it comes to the work that we're doing here to keep our more than 135 million members of credit unions' accounts safe and the work that we've done to foster greater financial inclusion and access.

One of the things I would be remiss then if I didn't tell you that stands out is our transparency as a Board and our transparency as a regulatory entity. People love the fact that we give you an opportunity to opine on our rulemakings and the ability to opine on our budget. So please know, you all, we are really well regarded. And I'm happy to be a part of a system here in the United States that really propels our 4,700 credit unions to serve their members.

Thank you. That concludes my time.