ARLINGTON, Va.–The fight between banks and credit unions over nominal leases on military bases may become as annual an issue as the defense budget itself, according to one person.
As CUToday.info has reported, the banking industry has again succeeded in having language inserted in the 2021 National Defense Authorization Act (NDAA) that would give banks equal access to military bases as credit unions currently enjoy. The provision is not currently included in the House version of the NDAA.
That fight is strongly reminiscent of the very same battle credit unions and banks fought in the 2020 NDAA, which credit unions eventually won.
“It’s potentially an annual thing,” said VP-Legislative Affairs Brad Thaler. “It’s actually come up fairly regularly over the last several years. Every time Congress has ultimately rejected (the bank provisions).
An End-Run
Thaler said credit unions have spent many years working with base commanders, building relationships and providing education and services to members of the military. Rather than taking that approach, said Thaler, the banking industry has gone around the Department of Defense—which has the authority on its own to provide the free leases to other financial institutions—going directly to Congress.
Thaler said he has not heard any new arguments from the banking industry this year that weren’t used in the last go-round for why banks should have access to the free or nominal leases.
“Banks have not done the same work that credit unions have done,” said Thaler, adding one risk is the Defense Department could tire of the debate and simply take away the leases from all providers.
Groups Send Joint Letter
As CUToday.info reported here, NAFCU joined with the Defense Credit Union Council and CUNA in sending a joint letter to Congress last week on the military base lease issue.
Added CUNA’s Eli Joseph, deputy chief advocacy officer, “CUNA and the leagues will be working this summer to make sure the language is not included in the final bill. Parity of access should only be provided when banks also provide a parity of people over profits.”