WASHINGTON–Following strong advocacy efforts by CUNA, NAFCU and the Defense Council of Credit Unions, language that would have given banks equal access to military bases as credit unions currently has has been removed from the final text of the fiscal year 2020 National Defense Authorization Act (NDAA).
The language was removed while in a conference committee that smoothed out differences between the House and Senate versions of the bill. The House bill did not include the language giving banks access; the Senate's did. The final bill must still advance to both chambers to vote on before being signed by President Trump.
“We commend the conference committee for putting our servicemembers’ financial readiness ahead of wall street profits in the FY 2020 NDAA,” said CUNA CEO Jim Nussle. “We thank the conferees and every lawmaker who worked with credit union advocates to keep such controversial language out of this important legislation, ensuring that our troops can remain focused on keeping our country safe.”
"Credit unions always put their members' best interests before profit, and we applaud the release of a modified NDAA that stripped a bank-sought provision that would have treated banks, such as Wells Fargo, the same as not-for-profit credit unions," said NAFCU President and CEO Dan Berger. "It would have also granted banks the ability to end-run the Department of Defense in an attempt to obtain nominal lease space on military bases.
"NAFCU, along with our colleagues at DCUC, has been actively working on Capitol Hill to inform lawmakers of the harm this provision would cause for credit unions and our nation's servicemembers, and we thank conferees for acting on our concerns," Berger added.
Anthony Hernandez, CEO of the Defense Credit Union Council, said the DCUC is very happy that conferees recognized Section 2821 of the Senate NDAA would have essentially required that the DoD treat large mega-banks, such as Wells Fargo, the same as not-for-profit defense credit unions when it comes to rent on military bases.
“This banking lobby proposal was another charade to attack credit unions and would have irreparably damaged DoD’s discretionary authority which defense credit unions must earn each year. Essentially, the bank lobby tried to pull a fast one, and portray themselves as something they are not. Credit unions called them on it, and once Congress learned the facts, they made the right decision," said Hernandez. “DCUC is very thankful for the tireless efforts of our Military Advocacy Committee and all credit union system partners in delivering this important resolution for defense credit unions. It was very telling that DoD did not support this banking lobby proposal. Plus, it is hard to see how this proposal would have benefitted our servicemembers over increased banker profits.”