WASHINGTON–With Congress back in session following the record-long shutdown, the National Defense Authorization Act (NDAA), in which credit unions have a strong interest, is among the primary, must-pass pieces of legislation on the agenda.
Jason Stverak, chief advocacy officer with the Defense Credit Union Council, said the goal in Congress is to get the NDAA on the floor and approved by both chambers by the second week of December, meaning they will need to have the enormous bill finalized by the end of this week.\
“We have been in constant contact with Senate Banking and House Financial Services in relation to the credit union priorities that are in the NDAA,” said Stverak during a call with the media.
Those priorities, he said, include money for the Community Development Financial Institution (CDFI) fund and NCUA’s Central Liquidity Fund.
For credit unions, there have been two pieces of good news relative to the CDFI fund. Although below prior allocations– the House has provided the CDFI Fund with $276.6 million for FY26, approximately $50 million below the 2025 appropriation), credit unions had been happy to see the funding restored after the Trump administration sought to eliminate it. The administration then announced it was planning to fire the Treasury staff that oversees and distributes the funds, but those positions have reportedly been restored for the next year as the result of the bill that was passed to re-open the government.
The Risk from Compressed Timeframe
Asked by the CU Daily whether the short time frame to move the NDAA forward raises the risk of additional amendments or changes to language in the legislation, Stverak answered, “I think it does. They want to get this done, so if there is something that is incredibly controversial it is less likely to be included. Historically, they have looked for the path of least resistance to get the bill that 50 senators will agree to and then 51 will vote in favor of, and 218 House members will vote for, too.”
Similarly, Ann Petros, VP-policy, engagement and credit union operations with America’s Credit Unions, said the trade group is “not super concerned at the moment” that additional language, or something as large as the credit union-opposed Credit Card Competition Act, might be added at the last moment.
Like Stverak, Petros said America’s Credit Unions remains hopeful the allocation for the CDFI Fund and the CLF remain in the NDAA.
‘Last Big Vehicle of the Year’
Stverak noted the NDAA is the “last big vehicle this year to add legislation to,” which creates a “natural tension to get a bill quickly done and passed.”While Stverak said there will likely be considerable debate behind the scenes in Congress, “Once it comes out of committee I think the cake is going to be baked in terms of the bill moving forward. There may be some action on the floor or attempts to make amendments, but I think what we get out of the conference committee is what is going to go to the president for his signature.”
Statement on Rescinded RIF Order
Separately, America’s Credit Unions issued a statement thanking the administration and Congress for rescinding the reduction-in-force order the administration issued during the shutdown that would have led to the firing of Treasury workers who oversee the CDFI fund.
“On behalf of the nearly 500 CDFI-certified credit unions and their members, America’s Credit Unions thanks the administration for acknowledging the importance of the CDFI Fund and continuing its workforce,” America’s Credit Unions’ President/CEO Scott Simpson released the following statement. “We are grateful to the congressional leaders who championed the fund and fought alongside us to protect it. Our unified advocacy made clear that communities across the country rely on CDFIs to spur business investment, innovation, affordable housing developments, and more. These credit unions are essential to the financial resiliency and vibrancy of our country, and we look forward to continuing to work with the administration to strengthen the effectiveness of the fund.”
