WASHINGTON–The House Armed Services Committee has passed the National Defense Authorization Act for fiscal year 2020 without including language that would have granted banks the same rent-free access to land and facilities that credit unions have long held.
A Senate version of the same legislation continues to include language opposed by credit unions. In both the House and Senate, CUNA, NAFCU, the Defense Credit Union Council and state leagues all joined to lobby Congress to maintain the current exemption for credit unions only.
The exemption, established under the Federal Credit Union Act of 1996, is restricted in scope to credit unions whose field of membership is at least 95% composed of individuals who are or were at the time of admission into the credit union military personnel, federal employees, or family of those who are or were.
As CUToday.info reported earlier, CUNA sent a letter this week noting banks currently have the ability to obtain the same type of waiver under Title 10 of the U.S. Code, but have not exercised this right.
“We’re pleased that Chairman Smith, Ranking Member Thornberry, and the rest of the House Armed Services Committee recognized the inherent differences between the credit union mission and structure and the profit-driven model that banks operate under,” said CUNA President/CEO Jim Nussle in a statement. “We look forward to this bill passing the House, and we’ll continue engaging with the Senate to preserve credit unions’ ability to serve American servicemembers and their families.”
An earlier amendment to the House bill would have extended to banks the same rent-free access to land and facilities that credit unions have been granted as a result of what CUNA called “their not-for-profit, member-owned mission and structure, which serves to enhance the wealth of servicemembers and their families living and working on those bases.”
The Senate version of the NDAA continues to include language that grants for-profit banks the same access as credit unions. The trade groups said they are working to have that language removed, as well.