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NAFCU, in a joint letter with the Defense Credit Union Council (DCUC) yesterday, relayed concerns to leaders of the Senate and House Armed Services Committees over language included in the fiscal year 2019 National Defense Authorization Act (NDAA) that requires the Department of Defense (DoD) to allow all banks to operate rent free on military installations. It would not change the current rules on credit union leases.

"[W]e remain concerned that the language providing 'free rent' in Section 2808 for banks goes well beyond the authority provided to DoD regarding credit union leases, and would disadvantage credit unions," the letter states.

NAFCU President and CEO Dan Berger and DCUC President and CEO Anthony Hernandez explained that only after discussions with the DoD and the enactment of an amendment to the Federal Credit Union Act, the DoD has the discretionary authority to afford space on military bases at a nominal rate to credit unions that meet certain criteria. Nothing in the legislation would currently change that for credit unions. However, this same requirement does not exist in the lease relief proposed for banks.

NAFCU and DCUC asked leaders of the committees to hold off on enacting this provision into law until the DoD, credit unions and other impacted entities have had adequate time to fully gauge the impact of this statutory language.

Monday's letter was sent to Senate Armed Services Committee Acting Chairman James Inhofe, R-Okla., Ranking Member Jack Reed, D-R.I., and House Armed Services Committee Chairman Mac Thornberry, R-Texas, and Ranking Member Adam Smith, D-Wash. Read the full letter here.