DCUC Supports Padilla-Cramer CLF Amendment in FY2027 NDAA

WASHINGTON, DC – This week, the Defense Credit Union Council (DCUC) is urging the Senate Armed Services Committee to support a bipartisan amendment led by Senators Alex Padilla (D-CA) and Kevin Cramer (R-ND) that would strengthen the National Credit Union Administration's (NCUA) Central Liquidity Facility (CLF) and enhance financial readiness for military communities nationwide. ​

In comments submitted to Committee Chairman Wicker and Ranking Member Reed, DCUC expressed strong support for including the amendment's CLF Enhancement Act provisions in the Fiscal Year 2027 National Defense Authorization Act (NDAA). 
 
DCUC has long supported permanent reforms to the CLF, recognizing its role as the credit union system's lender of last resort and a critical source of stability for military communities and during periods of economic stress: 
 
“CLF modernization is not merely a regulatory issue, it is a military readiness issue…Defense credit unions play a critical role in supporting military families through deployments, permanent changes of station, government shutdowns, natural disasters, economic disruptions, and other emergencies. Ensuring these institutions have access to a robust and reliable emergency liquidity backstop helps guarantee uninterrupted access to affordable financial services when military families need them most.”  
 
On behalf of DCUC, Chief Advocacy Officer Jason Stverak reminded: 
 
“Congress witnessed the value of a stronger CLF framework during the COVID-19 pandemic. Temporary enhancements enacted by Congress dramatically expanded access to the facility by allowing corporate credit unions to serve as agent members and facilitate participation for smaller institutions. These reforms increased access from approximately 283 credit unions to more than 4,100 institutions nationwide. Many of these institutions serve military installations, veterans, rural communities, and underserved populations that rely heavily on credit unions for financial services. Unfortunately, when those enhancements expired at the end of 2022, more than 3,300 credit unions lost access to this critical liquidity resource. The expiration also reduced available emergency liquidity capacity by nearly $10 billion. DCUC has repeatedly warned that allowing these authorities to lapse weakened the resilience of the credit union system and diminished the ability of defense credit unions to respond effectively during future emergencies. The Padilla-Cramer amendment would permanently restore these proven authorities and ensure credit unions can continue serving their members during periods of economic stress and uncertainty.” 
 
“Modernizing the Central Liquidity Facility within the NDAA is a smart, proactive readiness priority,” says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. “It ensures defense credit unions can continue doing what they do best, supporting servicemembers, veterans, and their families through every need or challenge they face. When financial stress hits, readiness matters, and this amendment helps ensure these institutions are always prepared to serve those who serve our Nation.” ​