ALEXANDRIA, Va.–The federal hiring freeze announced by the Trump administration will not likely affect NCUA. Federal financial regulatory agencies are exempt from the freeze, according to an interpretation by the law firm Davis Polk, reported RegReport.com.
In its analysis, Davis Polk gave three reasons why the freeze does not affect the financial regulators:
- The issuance of such a memorandum is a routine part of presidential transition.
- The regulatory freeze memo (issued Friday, Jan. 20) only applies to executive departments and agencies, and not independent agencies (which makes up most of the financial regulators). “Presidential regulatory memoranda have typically excluded these independent regulatory agencies,” the analysis points out in a footnote, RegReport.com reported. The memo additionally does not request that independent agencies voluntarily comply with a regulatory moratorium, as did a similar memorandum issued shortly after the inauguration of President George W. Bush, according to the law firm’s analysis.
- The Jan. 20 regulatory freeze (in a departure from earlier directives) also freezes issuance of any “guidance document[s]” by an executive agency, according to RegReport.com.
Separately, NCUA is also reviewing an order issued by President Trump that freezes new and pending regulations. Among the rules the order could affect: NCUA’s proposed field of membership rules overhaul. CUToday.info has additional details here.