National Defense Authorization Act FY2021


Ongoing - The Senate Armed Services Committee passed its version of the NDAA (S. 4049) on June 23, 2020. Senate debate is ongoing.


Our Position

DCUC opposes section 2885 in the Senate Version of the FY2021 National Defense Authorization Act (S. 4049) which 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, 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.’ Unless banks can increase their profit margin, they don’t care if there are no remaining financial institutions on the installation. Consequently, the military loses either way.



After years of negotiation with the Department of Defense and through amendment of the Federal Credit Union Act in 1996, Credit Unions - at the discretion of the base commander - may be exempted from the costs associated with leases, utilities, and ATM placement on military installations. This exemption is limited to credit unions if at least 95 percent of the membership to be served by the allotment of space or the facility built on the lease land is composed of individuals who are, or who were at the time of admission into the credit union, military personnel or federal employees, or members of their families. This exemption is not guaranteed for every credit union on every military base.  It is a negotiation between the base commander and that specific credit union.

Banks already have the ability via 10 USC §2667 to obtain the same type of waiver for rent.  However, banks have not exercised this clause. Instead, the banking industry has sought “parity” for no cost land leases through the NDAA, arguing that credit unions and banks are the same and, therefore, deserve the same benefits. This stance ignores the non-for-profit foundation of the credit union industry as well as the numerous restrictions credit unions must follow. It also ignores the fact that as a member-owned financial institution, defense credit unions give back to the same military communities that they are embedded in, not a third-party shareholder.


Grassroots Campaign - NDAA

Item Name Posted By Date Posted
Sample Letter to Congressional Rep on NDAA FY21 PDF (23.06 KB) Administration 7/9/2020
Sample Letter to Senate Delegation on NDAA FY21 PDF (23.08 KB) Administration 7/9/2020

In the News - NDAA

Item Name Posted By Date Posted
Lease exemption ... (Military Times, July 22, 2020 Link Administration 7/30/2020
DCUC Says Amendment on...(CUToday, July 19, 2020) Link Administration 7/23/2020
DCUC Leads Joint Effort on NDAA Link Administration 6/26/2020
DCUC Joins Forces with CUNA and NAFCU in NDAA Camp Link Administration 6/12/2020
Expanded military base..(CUNA News, June 12, 2020) Link Administration 6/26/2020
DCUC Calls on Senators... (CUToday, June 11, 2020) Link Administration 6/11/2020
DCUC Engages on NDAA Markup Link Administration 6/11/2020

Letters & Comments - NDAA

Item Name Posted By Date Posted
Letter to Rep Garcia on FY 21 NDAA - MLA Extension PDF (1.28 MB) Administration 7/17/2020
DCUC, CUNA, NAFCU Letter to SASC on NDAA Markup PDF (112.51 KB) Administration 7/6/2020
DCUC, CUNA, NAFCU Letter to HASC on NDAA Markup PDF (119.87 KB) Administration 6/12/2020
Letter to SASC on Markup of FY2021 NDAA PDF (1.31 MB) Administration 6/9/2020

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