WASHINGTON— The latest text of the Fiscal Year 2026 National Defense Authorization Act (NDAA) does not credit union-supported provisions that would have enhanced NCUA’s Central Liquidity Facility and would have extended Treasury’s CDFI Bond Guarantee Program and permanently authorized the Native American CDFI Assistance Program, among other things.
America’s Credit Unions called the changes “neutral” to credit unions, while the Defense Credit Union Council said it was “disappointed” in the development
As the CU Daily has reported, while credit unions were happy to see the Senate Appropriations Committee propose an increase in funding for the Community Development Financial Institutions Fund of $50 million more than the House has proposed, the NDAA in which that funding is included has hit some bumps in the House because of the CDFI Fund.
‘Nothing Harmful to Credit Unions’
“After a thorough review of the NDAA text, we are pleased to see that nothing in the bill is harmful to credit unions,” America’s Credit Unions’ President and CEO Scott Simpson said in a statement. “Because policy differences between the House and Senate led to the omission of a Financial Services title, and with it the CLF, CDFI, CBDC, and ROAD to Housing provisions, the final package remains neutral for our industry. While there appear to be no setbacks for credit unions in this legislation, we are reviewing the full text for any impacts. We are disappointed that several constructive measures we supported were ultimately left out. Rest assured, we will continue working with lawmakers to advance these priorities through other vehicles.”
‘Missed an Opportunity’
“Financial readiness is mission readiness, and by leaving out the CLF and CDFI provisions, Congress missed an opportunity to strengthen both our nation’s financial system and the defense community,” Anthony Hernandez, president and CEO of the Defense Credit Union Council, said in a statement. “We are deeply disappointed that these bipartisan measures did not survive in the final NDAA. However, this outcome will not deter us. DCUC will continue to fight for these vital reforms because our servicemembers, veterans, and their families deserve the strongest financial support network we can provide.”
Resolved to Continue
Added DCUC Chief Advocacy Officer Jason Stverak in a statement, “While it’s unfortunate that the CLF and CDFI measures were dropped, our resolve to advocate for military-serving credit unions remains steadfast. These commonsense reforms would allow mission-driven credit unions to expand access to capital, strengthen underserved communities, and ultimately bolster financial readiness for military families and veterans. We will continue working with lawmakers to find a path forward for these critical issues, whether through future defense bills or other legislative avenues.”
Central Liquidity Facility (CLF) Enhancements
As the CU Daily has reported, and as DCUC noted, the Senate’s NDAA had included a bipartisan amendment to permanently restore successful pandemic-era enhancements to the NCUA’s CLF. This measure, led by Sens. Alex Padilla (D-CA) and Kevin Cramer (R-ND), would have expanded emergency liquidity access for smaller credit unions (including those serving military bases) by allowing corporate credit unions to act as agents, an authority that proved effective during COVID-19.
“When the temporary CLF enhancements expired at the end of 2022, thousands of credit unions lost access to this vital safety net,” DCUC said. “The Senate provision sought to reinstate that access at no cost to taxpayers, ensuring credit unions could continue supporting their members during financial crises.”
CDFI Fund Strengthening
DCUC further noted the Senate-passed NDAA also contained a bipartisan CDFI reform package championed by Sens. Steve Daines (R-MT), Mark Warner (D-VA), Mike Rounds (R-SD), and Tina Smith (D-MN).
“This package would extend the Treasury’s CDFI Bond Guarantee Program, permanently authorize the Native American CDFI Assistance Program, and improve transparency and accountability in CDFI Fund operations,” DCUC stated. “These reforms were designed to help mission-driven credit unions expand access to capital, strengthen underserved communities, and support financial readiness for military families and veterans.”
‘Missed Opportunities’
DCUC called the absence of the CDFI provisions in the final NDAA a “missed opportunity to bolster community development efforts that benefit servicemembers and vulnerable communities alike.”
Louisiana Corporate View
“The Central Liquidity Facility could be a powerful liquidity tool for credit unions to access without affecting taxpayer dollars. Leveraging the corporate credit union system only makes it that much more efficient and effective, particularly for delivering liquidity to smaller credit unions,” said David Savoie, CEO of LaCorp, in a statement. “We hope that Congress will reconsider reinstating the COVID-era rules, which functioned flawlessly, in the future.”
