House Committee to Begin Markup of NDAA

Both the House and Senate are in recess this week, but several committees in both chambers have scheduled hearings.

The House Armed Services Committee will begin its markup of the National Defense Authorization Act (NDAA) for fiscal year 2022 Wednesday at 10 a.m.

Your League and other industry partners have pushed lawmakers to reject any proposed language that would require DoD to treat for-profit banks the same as credit unions when it comes to leases and lease costs for on-base branches. 

Last month, your League wrote Sen. Tim Kaine expressing our concerns and making the senator aware of the joint letter forwarded by the Credit Union National Association, the Defense Credit Union Council and the National Association of Federally Insured Credit Unions.

This week, your League wrote Reps. Elaine Luria and Rob Wittman urging them to oppose the banker-led proposal.

While banks argue for “parity” on this issue, the fact is that banks already can obtain leases at a nominal cost. Under the Military Leasing Act, 10 USC §2667, banks can demonstrate to DoD how they would use their lease to serve and provide value to the men and women of the base. However, banks still have not exercised this authority. Rather than seek a productive solution available to them under current law, they have opted to target their long-time nemesis credit unions in the process, notes the joint letter.

This provision amounts to an attempted end-run around the law and there are no guarantees for-profit banks would use any of the savings in lease costs to benefit military members or even the communities around the installation.

Read the letter