In Win for CUs, House Committee Doesn’t Include Bank-Sought Base Access Provision in NDAA

Language to allow banks rent-free access to military installations is not included in the House version of the fiscal year 2022 National Defense Authorization Act (NDAA), which today passed out of the House Armed Services Committee on a 57-to-2 vote.

"We're pleased the House Armed Services Committee opted not to include the base access provision sought by bankers," noted League President/CEO Carrie Hunt. "Reports indicate that the provision does not appear in the Senate version of the NDAA either, which if true is another significant win for credit unions. In any case, we'll need to remain vigilant throughout this process."

"Virginia is home to many credit unions with deep ties to the military and this long-running fight with bankers over this provision is a top-of-mind issue for many, including your League," noted Hunt.

Your League this week wrote Reps. Elaine Luria (D-2nd) and Rob Wittman (R-1st) -- both members of the Armed Services Committee -- and asked them to oppose the bank-access provision. 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.

The Department of Defense (DOD) has discretionary authority to allow credit unions to use land and space on military bases at a nominal rate, and banks have in the past looked to include language expanding it to include for-profit banks.

State leagues, the Credit Union National Association (CUNA), the Defense Credit Union Council and the National Association of Federally Insured Credit Unions (NAFCU) all worked closely in an effort to keep the language out of the House and Senate versions of the bill.

The Senate conducted a closed markup of its version of the FY22 NDAA in July. Reports indicate the provision was not included, but text of the markup is not yet available for review.

Also of interest: The House committee approved an amendment containing language that would direct the Department of Defense to study the larger issue of servicemembers' ability to access financial services on base.