League Calls on Congress to Preserve CUs' Special Access on Military Bases

Your League wrote Sen. Tim Kaine this week, joining other credit union organizations seeking to preserve the Department of Defense’s discretionary authority to allow credit unions to use land and space on military bases at a nominal rate. CUNA, the Defense Credit Union Council, and the National Association of Federally Insured Credit Unions wrote to the Senate Armed Services Committee in advance of this week’s closed markup of the FY22 National Defense Authorization Act.

“Unfortunately, we expect for-profit banks to once again ask Congress for a handout by seeking a provision in the 2022 National Defense Authorization Act that would require DoD to treat them the same as credit unions when it comes to leases,” the letter reads. “It is alarming those large banks such as Wells Fargo and Bank of America, who regularly earn billions in profits, would be equal to not-for profit credit unions if such a provision were to become law.”

"Credit unions in Virginia have served our military members and manned offices on installations for years," notes League Chief Advocacy Officer David Miles. "We ask the Senate Armed Services Committee to reject any attempt to treat for-profit banks the same as credit unions when it comes to leases."

“It is because of this focus on service to their members and their base, over profits, that led Congress to give the DoD discretionary authority to allow credit unions to use land and space on military bases at a nominal rate,” the letter reads. “It is also true that defense credit unions have been asked to remain on base to alleviate the high transactional costs coupled with poor service by other financial institutions."

Read the joint letter