House passes NDAA w/ SAFE Banking, CLF extension
The House passed the FY23 National Defense Authorization Act late Thursday with several CUNA-supported provisions. The bill includes the Secure and Fair Enforcement (SAFE) Banking Act, extends CARES Act Central Liquidity Facility flexibility, and includes provisions to support fair hiring in financial services.
“We thank the House for including these amendments that will help credit unions continue to meet the needs of members,” said CUNA President/CEO Jim Nussle. “Allowing financial institutions to serve legal cannabis-based businesses is a public safety issue that needs to be addressed, and the additional CLF flexibility will help credit unions access liquidity if needed.”
The CUNA-League-supported SAFE Banking Act would provide a safe harbor for financial institutions serving legal, cannabis-based businesses. It has passed the House as a standalone bill and as part of a package this Congress.
The CLF serves as a lender to credit unions experiencing unexpected liquidity shortfalls. The CARES Act allows for increased borrowing from the CLF, up to 16 times the amount of capital paid in (up from the pre-pandemic 12 times). The NDAA amendment—from House Financial Services Chairwoman Maxine Waters, D-Calif.—would extend this increased borrowing through 2023.
The NDAA also contains the text of the CUNA-supported Fair Hiring in Banking Act, which would replace the current ban on those interested in working in the banking sector with previous minor criminal records.
CUNA also kept language out of the bill to expand the credit union-Department of Defense arrangement over leasing costs to banks. Banks have sought this arrangement, but CUNA, Leagues, and credit unions have demonstrated how credit unions continue to provide excellent services to military members and families.