WASHINGTON–By a 329-101 vote, the House has passed the FY23 National Defense Authorization Act (NDAA) with a number of credit union supported provisions as amendments.
Those amendments include the Secure and Fair Enforcement (SAFE) Banking Act, which would remove federal prohibitions on serving cannabis businesses; an extension of CARES Act Central Liquidity Facility (CLF) flexibility, and provisions to support fair hiring in financial services.
The legislation also includes, however, language giving NCUA third-party oversight authority, which credit unions have opposed to date.
As CUToday.info has reported, given the partisanship in Congress the only real way to get smaller pieces of legislation passed is to include them as amendments on must-pass bills. The NDAA had as many as 1,200 amendments at one point.
“We worked side-by-side with our credit union champions to support these amendments, which in turn will help credit unions better meet the needs of their members,” said CUNA President/CEO Jim Nussle. “Allowing financial institutions to serve legal cannabis-based businesses boosts public safety, and the additional CLF flexibility will help credit unions access liquidity if needed.”
The Specifics
Specifically, the legislation allows the CARES Act to increase borrowing from the CLF at NCUA, up to 16 times the amount of capital paid in (up from cap of 12 prior to the pandemic). The NDAA amendment—from House Financial Services Chairwoman Maxine Waters (D-CA) would extend this increased borrowing through 2023, noted CUNA.
The bill also includes support for the Fair Hiring in Banking Act, which would replace the current ban on those interested in working in the banking sector with previous minor criminal records.