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FOR IMMEDIATE RELEASE
April 25, 2023
CUNA, the Defense Credit Union Council, and National Association of Federally-Insured Credit Unions wrote to House and Senate Armed Services Committee leaders in advance of consideration of the FY24 National Defense Authorization Act (NDAA) Tuesday. The joint letter rejects the unnecessary expansion of the lease agreement between the Department of Defense (Dod) and credit unions to include banks.
“We anticipate for-profit banks to ask Congress for a handout by seeking a provision in the 2024 NDAA that would require DoD to treat them the same as credit unions when it comes to leases. This may include inserting a provision that would force DoD to provide the same nominal leases to all banks,” the letter reads. “The bottom line is that for-profit banks have declined to use the process available to them at the DoD to lower base lease. Furthermore, we are concerned that this effort by for-profit banks would amount to Congressional micromanagement of individual base commanders to solve a problem that the DoD has confirmed does not exist. We oppose them using this critical, must-pass defense bill to cut corners.”
The letter notes the Department of Defense (DoD) studied the issue last year in a report analyzing financial access for servicemembers on base. The report found servicemembers on base had many options—and no obstacles—when it came to obtaining financial services on any domestic military installations. It also notes banks are currently eligible for similar waivers, but have not pursued that option.
Banks have sought to be eligible for certain waivers for on-base branches in recent years, but CUNA, League, and partner advocacy has prevented inclusion of any such language.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.