WASHINGTON–The Defense Credit Union Council said in the new year it will be making a priority out of supporting passage of legislation that expands access to NCUA’s Central Liquidity Facility CLF).
The legislation, CLF bill (S.3575), was earlier approved by the Senate and in the Senate-passed National Defense Authorization Act (NDAA) before being stripped out of the final bill. The new bill is being co-sponsored by Sens. Alex Padilla (D-CA) and Kevin Cramer (R-ND).
According to DCUC, the CLF bill reflects strong bipartisan leadership and builds on the momentum generated during consideration of the NDAA, “reinforcing Congress’s commitment to addressing this critical issue.”
‘Liquidity Backstop’
“We’ve said from the beginning that this is an opportunity for Congress to pass bipartisan legislation that will provide a liquidity backstop for all for every credit union in the United states,” said Jason Stverak, chief advocacy officer with DCUC adding the group was “extremely disappointed” Congress could not come to an agreement on keeping the CLF amendment in the $900-billion NDAA.
“We’re thankful once again that Sens. Padilla and Cramer are shouldering the leadership responsibilities to not only introduce the legislation but to push for a hearing and inclusion in possible legislation moving forward,” Stverak added. “The CLF bill is going to be at or near the top of DCC’s advocacy agenda as we kick off 2026.”
The Greatest Risk
Asked by the CU Daily during a call with the media what is the greatest risk to credit unions if the CFL legislation ultimately doesn’t pass Congress, Stverak said it would be “the fact that we have a credit union system that doesn’t have all of the tools to ensure that it can survive any disastrous shocks to the economy or, God forbid, another COVID type instance where we had to pass specific legislation as part of the CARES Act to do what this legislation is trying to.”
Those temporary CARES Act provisions have since expired.
“A lot of it is the peace of mind that credit unions have access to these incredible, different avenues of liquidity in case any issue pops up,” Stverak added. “I’ve used this example before: you don’t build the fire department after the fire has started. Nobody ever wants to rely upon or need the CLF, but when we have those type of economic shocks or worries I’m very thankful that it is there. We should make it available as a tool for smaller credit unions and mid-size credit unions.”
What Goes Around
Separately, from the what-goes-around-comes-around department, although the 2025 NDAA just passed, Stverak added that as soon as Congress reconvenes in 2026 it will start advocating for the 2026 version of the legislation and will also again be watching out for the Marshall Durbin legislation that would affect card processing fees, as well as other bills that were successfully fought off this year.
