WASHINGTON— The Defense Credit Union Council is urging the Senate to adopt a bipartisan amendment from Sens. Alex Padilla (D-CA) and Kevin Cramer (R-ND) that would restore and modernize the NCUA’s Central Liquidity Facility, arguing the move is essential to ensuring credit unions—especially those serving military communities—retain access to a critical emergency liquidity backstop.
DCUC urged Padilla and Kevin Cramer to include their bipartisan Central Liquidity Facility (CLF) Enhancement amendment for the Senate’s consideration of the Housing for the 21st Century legislation.
In a letter to Padilla and Cramer, DCUC Chief Advocacy Officer Jason Stverak emphasized that DCUC has long been a "leading advocate" for strengthening the CLF as a critical liquidity backstop for the credit union system, particularly for institutions serving military communities and underserved areas.
"Your bipartisan amendment represents a practical, common-sense step to restore and modernize the CLF, ensuring credit unions can continue providing stable financial services during periods of economic uncertainty," wrote Stverak. The Central Liquidity Facility plays a vital role in maintaining the safety and soundness of the credit union system, serving as the credit union system’s lender of last resort and providing emergency liquidity to institutions facing unexpected financial stress."
Stverak noted that DCUC has consistently supported legislation to permanently modernize the CLF and expand credit unions’ ability to access emergency liquidity.
"We were proud to work alongside members of Congress and industry partners to advocate for inclusion of CLF reform in the Senate’s version of the FY2026 National Defense Authorization Act, where the measure received strong bipartisan support before ultimately being removed during conference negotiations," he stated. "The bipartisan amendment you are now offering provides Congress another opportunity to advance this important policy and ensure credit unions remain equipped to serve their communities in times of economic stress."'
Stverak said the amendment would restore reliable emergency liquidity access for credit unions of all sizes, particularly smaller and defense-focused institutions that often lack other federal backstops. He argued that stronger CLF access would help credit unions continue making mortgages, home-improvement loans and other consumer loans that support housing stability, while also improving the overall resilience of the credit union system during future economic stress.