DCUC Leads Joint Effort on NDAA
Tuesday, June 23, 2020
Yesterday the House Armed Services Committee (HASC) released its markup summaries. DCUC paid close attention to the HASC Subcommittee on Personnel and the Subcommittee on Readiness. Neither had language regarding bank leases which is a good sign.
Although the legislation still has to be approved by the full House Armed Services Committee, it’s gratifying that the Subcommittees took a more measured and sensible approach to their bill. DCUC is convinced that credit unions will maintain their strong opposition to this banker grab, and that we will prevail.
In a late day move, DCUC led joint efforts on joint trades letter to the Senate Leadership regarding its upcoming vote and amendment process on the Senate version. This is an unprecedented display of unity and follows last week’s joint letter to the House Armed Services Committee. We believe a united front sends a powerful message that asks for the removal of this controversial language.
The controversy stems from language in the Senate bill that would require the Department of Defense (DoD) to treat “for-profit” banks as “not-for-profit” institutions so banks can obtain the same no-cost land leases, as an ultimatum for banks remaining on installations. Yet, there are no restrictions on how banks would use these savings.
Worse, there is no pre-supposed outcome in the banking proposal. This means if DoD does not grant the banker’s wishes, then the legislation would require DoD to charge credit unions the same as banks under the guise of ‘equality.’ This is a slippery slope in that unless banks can increase their profit margin, their calls for ‘parity’ would drive remaining financial institutions off the installation. Consequently, the military loses either way.
As legislation progresses, DCUC will again ask to for member credit union support in a grassroots campaign to send similar letters to their Congressional delegation along with partnering with their league and regional associations.