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Senate NDAA includes CU-opposed provision; NAFCU fights for removal
The Senate Armed Services Committee has released the text of its version of the fiscal year 2021 National Defense Authorization Act, which currently includes a NAFCU-opposed provision that could disadvantage credit unions as it would treat all banks, including large ones like Wells Fargo, the same as local, not-for-profit credit unions when it comes to nominal leases on military bases.
NAFCU has consistently advocated against this bank-sought provision in the NDAA and successfully kept it from being included in a final version of the bill last year, despite it being included in the initial Senate-version of the measure.
Earlier this week, NAFCU joined with the Defense Credit Union Council (DCUC) and CUNA to voice credit unions' opposition against the inclusion of this provision to Senate Majority Leader Mitch McConnell, R-Ky., and Minority Leader Chuck Schumer, D-N.Y. The associations touted the value that credit unions bring to servicemembers and their families, and the efforts taken to bring affordable financial products and services to them while protecting them from predatory institutions.
“Our organizations recognize the important role both credit unions and banks can play for our men and women in the military in the provision of traditional financial services and in protecting our troops from predatory lenders,” urged the organizations. “However, we remain concerned that this effort in the FY2021 NDAA to tie the fate of banks on the lease issue to credit unions could ultimately disadvantage credit unions and the men and women of our nation’s armed services that they serve.”
NAFCU's advocacy on this issue begins early each year – prior to the Senate Armed Services Committee and House Armed Services Committee markups of their respective bills – to keep credit unions' concerns top of mind.
Stay tuned to NAFCU Today for updates as the bills move through the chambers. Credit unions are also encouraged to join NAFCU's advocacy through its Grassroots Action Center and send messages directly to lawmakers on the NDAA provision.