WASHINGTON—As the Senate begins debate on its version of the fiscal year 2020 National Defense Authorization Act (NDAA), NAFCU is pushing the Upper House to delete language in section 2821 that would give banks the same access to leases on military bases that credit unions currently have. The House has already deleted similar language from its version of the NDAA.
In a letter to the Senate, NAFCU VP-Legislative Affairs Brad Thaler wrote, “NAFCU recognizes the important role both credit unions and banks can play for our men and women in the military in the provision of traditional financial services and in protecting our troops from predatory lenders. However, we remain concerned that efforts to provide 'free rent' for banks on military installations are missing the mark, and would disadvantage credit unions.”
Thaler also sent a message to update member credit unions on how the Senate's provision would impact credit unions on military bases. He directed credit unions to use NAFCU's Grassroots Action Center to contact their senators and urge them to strike section 2821 in the NDAA.
Currently, credit unions have nominal lease space in federal buildings and on military bases as a result of a provision added to the Federal Credit Union Act in 2006. Last year, House and Senate conferees of the FY2019 NDAA dropped this provision – which could require the Department of Defense to treat all for-profit banks the same as not-for-profit credit unions when it comes to land leases – from the final bill, noted NAFCU, which had pushed for that change.