NJCUL/CUNA Opposing NDAA Provision Excluding CUs from Military Bases

The NJCUL wrote to members of New Jersey’s Congressional Delegation to oppose a provision in the House version of the National Defense Authorization Act (H.R. 5515) that would exclude credit unions from the current resources furnished to them on military bases. The provision would be a detriment to military credit unions while granting banks access to the same bases.

Currently, the furnishing of office space to on-base credit unions is governed by Section 124 of the Federal Credit Union Act. This language exempts on-base credit unions costs related to leases, utilities and services on military bases.

Section 2808 of the House version of NDAA was intended to treat Federal or state chartered insured depository institutions equally with respect to the financial terms of leases, services, and utilities. Unfortunately, its definition of “insured depository institutions” excludes credit unions.

CUNA wrote members of Congress this week as well. CUNA’s letter was sent to the leadership of the Senate and House armed services committees. 

In addition to its letter, the League is following up directly with appropriate staff members on Capitol Hill.

While the general consensus appears to be that the provision is a result of a drafting error, it was not corrected before the measure was passed by the House. The Senate version does not contain the same provision. The issue must be resolved through the House-Senate conference process. Formal conference consideration is expected in mid-to-late July.

in Legislative & Political News