WASHINGTON--The Defense Credit Union Council (DCUC) is urging urging Congress to make the Central Liquidity Facility (CLF) expansion a standalone priority in any upcoming must-pass legislation.
DCUC made the request in a letter to Senate Democrat Leader Chuck Schumer, Senate Republican Leader John Thune; Speaker of the House Mike Johnson, and House Minority Leader Hakeem Jeffries.
In the letter, DCUC emphasized the "essential" role the CLF plays as a liquidity backstop for credit unions, managed by the National Credit Union Administration.
"The CLF has been a vital tool for credit unions during periods of financial stress, providing smaller institutions in particular with the resources needed to continue serving their members in times of crisis. By making this expanded access permanent, Congress can help ensure credit unions of all sizes can maintain financial stability, particularly in uncertain economic times," DCUC said.
DCUC listed the benefits of the CLF Expansion, to include enhanced liquidity access during economic uncertainty, financial stability for the broader financial system, support for military families, critical support for small and community credit unions, and proactive financial preparedness. DCUC also highlighted how CLF reform and expansion supports credit unions commitment to communities, prevents future financial crises, encourages healthy market competition and increased access to affordable credit, and offers greater regulatory flexibility in managing liquidity within the credit union system.
DCUC urged Congress to pass the reform as a standalone measure, "recognizing the importance of a permanent CLF expansion for the continued health of the credit union system and the financial readiness of military and veteran families."
DCUC also stressed that any attempts to attach this measure with unrelated priorities could risk "fragmenting" the credit union industry.