WASHINGTON–The NCUA Central Liquidity Facility (CLF) Enhancements Act has been introduced in Congress with support from credit unions.
The bipartisan bill introduced by Senators Alex Padilla (D-CA) and Kevin Cramer (R-ND).
The legislation seeks to permanently restore key provisions that expand credit union access to the NCUA’s Central Liquidity Facility, which serves as an emergency liquidity backstop.
During NCUA’s recent board meeting, agency staff said there have been no loans made by the CFL in 2025; there were two such loans in 2024.
‘Zero-Cost’
“Making the NCUA central liquidity facility enhancements permanent as a zero-cost, common sense step that strengthens credit unions’ resilience, safeguards financial stability, and ensures military families and underserved communities have continued access to reliable financial support–especially in times of crisis,” Anthony Hernandez, DCUC president & CEO, said in a statement. “We appreciate both Sen. Cramer and Sen. Padilla for their bipartisan leadership on this critical issue and look forward to working together to enact the CLF Enhancement Act into law.”
A ’Lifeline’
Added Jason Stverak, chief advocacy officer with the organization, “DCUC has championed this legislation since the early days of the pandemic. And defense credit unions often serve communities that lack access to other liquidity tools, so this is a large part in why DCUC has stressed that losing this lifeline weakens credit unions’ ability to respond to crises and best serve the communities that rely on them for their financial needs.”
Key Benefits of the Act
According to DCUC, the bill offers a no-cost, proactive solution to “reinforce the credit union system before the next crisis strikes.”
Key Benefits
DCUC highlighted several key benefits of the legislation, including:
- Improved Emergency Liquidity Access.
“The bill ensures credit unions of all sizes can access critical funds in times of stress, allowing continued support for members without disruption.” - Enhanced Financial System Stability. “Broader CLF participation reduces systemic risk and protects the National Credit Union Share Insurance Fund,” DCUC said.
- Support for Small, Community, and Defense Credit Unions. “The bill’s provisions restore an important safety net for credit unions on military bases and in underserved communities, where alternative liquidity sources are limited.”
- Preparedness Without Cost to Taxpayers. “The Congressional Budget Office has confirmed the bill carries no scoreable cost. It strengthens financial defenses with zero taxpayer burden,” according to DCUC.