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The House Armed Services Committee Thursday advanced its version of the fiscal year 2020 National Defense Authorization Act (NDAA) without an amendment regarding bank leases on military installations that could disadvantage credit unions. NAFCU's advocacy team has been active on Capitol Hill, urging committee members to oppose such an amendment if offered.

The legislation now moves to the full House for consideration. Although Rep. Trent Kelly, R-Miss., withdrew the amendment that would have required the Department of Defense (DoD) to treat all banks the same as credit unions when it comes to land leases during the markup, the Senate version of the FY2020 NDAA – the text of which was released yesterday – does include this provision. NAFCU will again lead efforts to ensure credit union interests are protected in any final bill.

"NAFCU thanks members of the House Armed Forces Committee for listening to credit unions' concerns and recognizing the value that credit unions bring to our servicemembers. We appreciate Representative Kelly withdrawing the nominal lease provision," said NAFCU President and CEO Dan Berger. "We will continue to urge lawmakers to oppose this provision, which essentially would treat Wells Fargo and other big banks – who have soaring profits despite a long track record of consumer abuses – the same as local, not-for-profit credit unions."

Credit unions have nominal lease space in federal buildings and on military bases from a NAFCU-sought provision added to the Federal Credit Union Act in 2006. Last year, NAFCU efforts led House and Senate conferees of the FY2019 NDAA to drop the provision regarding bank leases on military installations.

NAFCU, prior to markups of the bill, urged leaders of the Senate Armed Services and House Armed Services Committees not to include a bank lease provision in the FY2020 NDAA and thanked them for not including the language in the final bill last year.

Also this week, the House Appropriations Committee advanced to the full House the fiscal year 2020 financial services and general government (FSGG) bill. It includes $2 million for the NCUA's Community Development Revolving Loan Fund and $300 million for the Treasury's Community Development Financial Institutions Fund.

The report accompanying the FSGG bill also includes NAFCU-backed language directing the NCUA, alongside five other regulators, to conduct a joint study on the economic impact of the current expected credit loss (CECL) accounting standard. The study would be due 180 days – or six months – following congressional passage of this bill.

Next week, NAFCU and the Defense Credit Union Council will host the Defense Credit Union Summit at NAFCU's 52nd Annual Conference & Solutions Expo in New Orleans.