The Senate voted in favor of the National Defense Authorization Act (NDAA) conference report that omits a harmful provision to military credit unions. As a result, credit unions will continue to receive exemption from costs associated to the furnishing of office space and/or land (including ATM placement) on military bases – as governed by Section 124 of the Federal Credit Union Act.
CUNA strongly pushed for removal of Section 2808 from the NDAA which intended to treat federal or state charted insured depository institutions equally with respect to the financial terms of leases, services and utilities. However, the definition of "insured depository institutions" excluded credit unions.
"We thank both chambers for considering our concerns and removing this unclear language from the NDAA," said CUNA President/CEO Jim Nussle. "We will continue to be vigilant to ensure credit unions in military communities can continue to provide safe and affordable products to help meet the needs of our country's servicemen and women"
CUNA, in partnership with leagues, credit unions and the Defense Credit Union Council, vocally opposed the provision. CUNA wrote to leadership of both Armed Forces Committees in support of striking Section 2808.
The House passed the NDAA last week.