Credit Union National Association (CUNA) officials said the organization would continue to work with Congress regarding National Defense Authorization Act (NDAA), despite Senate passage of its version.
The Senate legislation contains CUNA-opposed language, officials said, noting it expands certain waivers for rent and other facilities costs for financial institutions on military installations currently granted to credit unions.
The House version of the NDAA, which advanced the House Armed Services Committee earlier this month, does not contain such language.
The Department of Defense has discretionary authority to waive the cost for land leases and other fees for credit unions that meet the specific field of membership standards and secure an agreement with individual base commanders on a case by case basis. CUNA is expected to work with Congress as the bill moves into conference committee.
The CUNA acknowledged this year’s version of the Senate NDAA language is not as severe as what was in last year’s House NDAA, which CUNA, leagues and the Defense Credit Union Council successfully fought to exclude.
The language in the current Senate-passed NDAA broadens the exemption for banks, but only if they meet the same standards as credit unions eligible for the exemption, most notably that 95 percent of the membership of the institution is active duty or retired service members and their families.