Provision stripped from final NDAA agreement

The credit union movement achieved a notable win Monday when the final version of the fiscal year 2020 National Defense Authorization Act (NDAA) was released without a provision that would have allowed certain banks to obtain cost waivers to operate on military installations.

Throughout 2019, the fight to preserve the credit union difference has been a major advocacy goal for Cornerstone, CUNA, and credit unions. Advocates have maintained that banks, which profit off servicemembers to benefit Wall Street investors, should not be granted the same rent-free access afforded to credit unions that meet certain provisions in addition to delivering the not-for-profit mission and member-owned structure to bases at home and abroad.

"We are very pleased with the outcome of the final defense authorization bill, and we thank members of Congress for recognizing the credit union difference when it comes to the exceptional service our members provide our military," said Cornerstone Chief Government Relations Officer Jim Phelps. "We couldn't have achieved this milestone without the support of CUNA and our grassroots credit union advocates who really understood what was at stake. This NDAA provision was one of Cornerstone's priority issues during our Hike the Hill visits in September, and it's gratifying to see that our efforts paid off." 

CUNA President/CEO Jim Nussle said, "By working collaboratively to remind lawmakers that the financial wellness of our servicemembers is more important than bankers’ profits, credit unions have achieved a remarkable win for our mission and structure."

CUNA reports that in addition to regular engagement with policymakers, our activated credit union members submitted more than 2,700 messages to lawmakers while the Senate and the House worked out their different versions of the bill. Credit unions’ advocacy efforts were featured in Politico and Bloomberg Government, and several representatives also sent letters of support, including Reps. Jackie Speier (D-Calif.), Paul Cook (R-Calif.), and Brad Sherman (D-Calif.).

This policy achievement is the latest in 2019, along with delays in the implementation of costly CECL standards, a proposed raise by regulators in remittance reporting thresholds, and the House passage the SAFE Banking Act, allowing credit unions to invest in community safety while serving certain legal cannabis businesses.