Trades Send Joint Letter To Senate On NDAA (CUToday, June 22, 2020)
Monday, June 22, 2020
WASHINGTON—As the National Defense Authorization Act (NDAA) for fiscal year 2021 moves toward a full Senate vote, the Defense Credit Union Council (DCUC), CUNA and NAFCU have sent a joint letter to Senate leadership asking for language to be removed from the act that could jeopardize CUs’ ability to remain on military bases.
Last week DCUC, CUNA and NAFCU sent a joint letter to the House Committee on Armed Services after a Senate summary of the act revealed bankers once again are seeking a provision that would require the Department of Defense to treat them the same as credit unions when it comes to leases on military bases.
Last week’s joint letter asked the House committee to counter the Senate’s proposed language.
Monday’s letter asks the Senate to remove “controversial language” in its version of the NDAA.
“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,” DCUC President and CEO Anthony Hernandez told CUToday.info. “Worse, there is no pre-supposed outcome. This means if DoD does not grant the bankers’ 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—unless banks can increase their profit margin, their calls for ‘parity’ would drive remaining financial institutions off the installations. Consequently, the military loses either way…Hopefully, the Senate will remove the banking language from its bill before passage.”
Read the full article >>>