Credit Union Regulator Sheds Over 200 Employees in Buyout Offers

Around 220 employees at a federal regulator overseeing credit unions accepted voluntary resignation offers as the Trump administration continues its push to slash the federal workforce.

The employees had applied for the administration’s deferred resignation program or a voluntary separation incentive payment as of Wednesday, according to multiple people familiar with the matter who requested anonymity to avoid potential retaliation.

The agency had been seeking 217 voluntary resignations, or 18% of its approximately 1,200-person workforce, according to documents obtained by Bloomberg Law.

The NCUA didn’t immediately respond to a request for comment.

The cuts came after Elon Musk’s Department of Government Efficiency arrived at the regulator’s offices earlier this month. President Donald Trump last week fired two Democratic board members, former Chairman Todd Harper and Tanya Otsuka, adding to the state of uncertainty at the agency.

Other federal financial regulators, including the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, are also offering voluntary resignation programs to cull their workforces.

‘Mission Critical’

The NCUA board can deny early resignation applications from employees it deems to be “mission critical.”

But with only NCUA Chairman Kyle Hauptman on the board following the firings of Harper and Otsuka, it’s unclear whether the agency’s leadership would have a quorum to make such decisions.

Employees whose voluntary resignation requests are denied can be paid at a time-and-a-half rate while they continue to work at the NCUA, a source familiar with the agency’s programs said.

The Trump administration began offering deferred resignations soon after the president took office in January. The program allows participating federal workers to be put on administrative leave and paid through September.

Around 75,000 of the 2.4 million-strong federal civilian workforce accepted an initial round of offers earlier this year. Several government agencies, including the Treasury Department, gave employees a second chance to apply.

The NCUA’s deferred resignation program was more generous, allowing workers to be paid through December while remaining on administrative leave. Those employees who stay through Dec. 31 are eligible for a lump-sum payment of up to $42,500, according to the internal agency documents.

The agency’s VSIP offer is available only to employees eligible for retirement, allowing them to receive a $50,000 lump-sum payment if they retire by Dec. 31.

The deadline to apply for the two programs is May 5.