DCUC Urges Inclusion of CLF Enhancement Act in Housing Legislation to Strengthen Credit Union Liquidity

Today, the Defense Credit Union Council (DCUC) sent a letter to Senators Padilla (D-CA) and Cramer (R-ND) leadership urging the inclusion of the Central Liquidity Facility (CLF) Enhancement Act language in the upcoming Housing for the 21st Century Act as it moves to the Senate floor. 

The CLF provides essential emergency liquidity to institutions serving millions of Americans. The bipartisan legislation would permanently restore and modernize critical CLF authorities, ensuring that credit unions can continue providing stable financial services even in times of economic stress. ​

"During the pandemic, temporary CLF enhancements expanded access from just a few hundred credit unions to more than 4,000 institutions, significantly strengthening financial stability and protecting consumers. When those provisions expired, thousands of primarily small and defense-focused credit unions lost access to this vital liquidity backstop,” wrote DCUC Chief Advocacy Officer Jason Stverak. “The Senate has already demonstrated strong bipartisan support for this policy by including the CLF language in its version of the FY2026 National Defense Authorization Act. Although the provision was ultimately removed in conference, its prior passage reflects clear Senate consensus on the importance of strengthening credit union liquidity safeguards.” 

Stverak noted that including the language in the Housing for the 21st Century Act presents a timely opportunity to enact the commonsense, zero-cost reform. “Ensuring credit unions have reliable emergency liquidity directly supports housing stability, mortgage lending continuity, and financial readiness for military families and communities nationwide,” he wrote. 

DCUC’s letter stressed the importance of maintaining these critical liquidity tools to protect credit unions and their members. DCUC urges Senate leadership to include the CLF Enhancement language in the final housing package, helping safeguard financial stability for communities across the nation.