WASHINGTON–The Senate has passed the $925 billion National Defense Authorization Act (NDAA), which includes two measures supported by credit unions: the NCUA’s Central Liquidity Facility (CLF) Enhancement Act and an amendment guaranteeing the future of the CDFI Fund.
Other amendments both supported and opposed by credit unions were not included.
The legislation, which passed the Senate on a 77-20 vote and which will now go back to the Senate and House Armed Services committees to negotiate a compromise bill, passed just a week ahead of when members of the military and other government workers are set to miss their first paychecks as the result of the government shutdown.
DCUC: Meaningful Step
“We thank the Senate for its leadership and strong bipartisan support in moving the FY26 NDAA forward,” Anthony Hernandez, president and CEO of the Defense Credit Union Council, said in a statement. “Including the CLF Enhancement Act is a meaningful step toward ensuring credit unions can better serve those who serve our nation.”
Added DCUC Chief Advocacy Officer Jason Stverak in a statement, “We commend lawmakers for their commitment to advancing policies that help military families achieve financial readiness and stability. We also want to thank Sen. (Alex) Padilla (D-CA) and Sen.(Kevin) Cramer (R-ND) for their leadership on including the CLF Enhancement Act as an amendment to the NDAA.”
America’s Credit Unions Responds
Similarly, America’s Credit Unions praised passage of the bill and the CU-supported amendments that were included.
“We stayed focused throughout the NDAA process to have Congress include measures that would help credit unions, while also protecting against amendments that would cause harm to credit unions and their members,” said Jim Nussle, ACU president and CEO, in a statement. “Our advocacy efforts culminated with the Senate’s vote to advance the NDAA with two significant amendments that would help credit unions, by permanently extending emergency liquidity enhancements and also providing transparency to the U.S. Treasury’s CDFI Fund, while stopping another amendment that could have led to serious financial disruption. America’s Credit Unions is committed to ensuring the final NDAA bill brings significant, positive changes to empower credit unions and their members.”
ACU Support for CDFI Language
While credit unions and other CDFIs continue to wait on the Trump administration to disburse money from the CDFI Fund, Nussle praised inclusion of the amendment that would guarantee the future of the fund, which the administration has sought to all but eliminate. Approximately 500 credit unions are CDFIs.
“Credit unions are often the financial backbone in vulnerable communities, providing services at lower rates and with affordable terms,” said Nussle in a statement. “While banks and other financial institutions regularly abandon these areas in search of higher profits, credit unions remain a key community partner and actively help their members reach their goals. The credit union movement thanks Sen. (Steve) Daines (R-MT), along with cosponsoring Sens. (Mark) Warner (D-VA), Sen. (Mike) Rounds (R-SD), (Tina) Smith (D-MN) and (Mike) Crapo (R-ID), for their work to include the Community Development Financial Institutions (CDFI) package in the Senate NDAA. Credit unions serving low-income and underserved communities rely on the CDFI Fund to keep providing the lowest-rates and the lowest cost services. This amendment will help CDFIs better serve their communities and ensure Congress is performing their oversight responsibilities for the CDFI Fund.”
DCUC: ‘Strong’ Support
“DCUC strongly supports this bipartisan effort to reinforce the CDFI Fund,” said DCUC’s Hernandez in a statement. “Credit unions are often the only financial lifeline in underserved communities, including military bases, rural towns, and inner-city neighborhoods. Strengthening the CDFI Fund ensures these institutions can continue to serve families, small businesses, and servicemembers who are too often overlooked by larger banks.”
DCUC noted in a statement that for more than three decades, CDFIs—nearly 500 of them credit unions—have provided affordable loans, financial education, and economic development in low-income areas, many near military bases. In FY2024 alone, CDFI awardees financed over 109,000 small businesses and supported more than 45,000 affordable housing units, leveraging $8 in private capital for every $1 in federal funds, the organization added.
“Credit unions deliver enormous value to their members and communities,” said Stverak in a statement. “Bipartisan support for the CDFI Fund proves just how vital they are to our nation’s financial health and security.”
ACU: Support for FCU Act Amendment
“Credit unions are our nation’s financial first responders, taking quick action to help our communities through hard times by providing personally tailored low-rate services,” said Nussle in a statement. “But when credit unions need access to emergency resources in challenging financial times, current federal restrictions make it difficult for institutions to get the emergency assistance they need to keep the lights on and continue supporting their community. We thank Senators Padilla and Cramer for their support of our ‘people helping people’ mission and recognizing how vital it is for credit unions to be able to take quick action.
“If enacted, this amendment will allow credit unions easier access to critical emergency liquidity through the NCUA’s Central Liquidity Facility. We appreciate the Senate for working with America’s Credit Unions to ensure that credit unions will be able to get the help they need so they can help their members,” Nussle added.
Legislation That Wasn’t Included
Several pieces of legislation that had both the support of and that were opposed by credit unions were not included.
Among that legislation:
The Main Street Depositor Protection Act
“America’s Credit Unions applauds Sens. (Bill) Hagerty (R-TN) and (Angela) Alsobrooks (D-MD) for their bipartisan work on the Main Street Depositor Protection Act,” said Nussle in a statement. “This bill would ensure small businesses have faith in their local financial institutions, such as credit unions, so that they can work with a trusted community credit union for their financial needs instead of a Wall Street mega bank. This commonsense reform will help credit unions continue to meet their mission of helping Main Street America.” –
Amendment to Pay Interest on Fed Deposits
“Credit unions work with federal partners to remain in compliance with laws and regulations, with many keeping deposits in the Federal Reserve System,” said Nussle in the statement. “Not only does the federal banking system help make sure the country keeps running, but interest on these deposits also help credit unions keep operations running and prices low for their members. The proposed amendment by Sen. Rand Paul (R-KY) would prohibit the Federal Reserve from paying interest on deposits held in its system, cutting off that revenue and impacting liquidity. Removing this source of revenue from their own money would have a devastating impact on credit unions and other community financial institutions, while also hurting all Americans that rely on credit unions for their financial needs. America’s Credit Unions thanks Congress for opposing this amendment.”
