Defense Credit Union-Bank Fight a Priority During August Break

Credit union trade groups are spending the congressional recess urging House and Senate defense leaders to reject efforts to expand the free rent benefit that credit unions now receive to banks.

“Credit unions are able to provide the strongest community support in the face of morale, recreation and welfare funding shortfalls as we remain the only not-for-profit, member-owned financial institutions on an installation,” CUNA President Jim Nussle and state credit union league officials wrote to the leaders of the House and Senate defense panels last week .

When Congress returns after the August recess, those lawmakers will attempt to reconcile the differences between the massive House and Senate defense authorization bills. The Senate bill calls for Pentagon officials to provide banks with the free rent benefit. The House bill does not include that provision.

While that provision likely is considered minor in the context of the huge defense measure, CUNA officials have included it on a list of three issues they would like local credit union officials to discuss with their lawmakers during the recess.

The other two issues are cannabis banking and data security.

“Credit unions on military bases are focused on ensuring the financial readiness of America’s service members,” the credit union officials said in their letter.

Steven Lepper, president/CEO of the Association of Military Banks of America pointed out that House-Senate conferees on the defense bill have not yet been appointed.

“We hope they will see the value to our military communities of keeping banks on military installations and will conclude that the Senate language offers the best hope of achieving that goal,” he told CU Times.

He added that if credit unions are concerned about their communities, they will acknowledge that those communities benefit when banks and credit unions work together.

NAFCU officials also are pressing their point with lawmakers during the recess.

“NAFCU remains focused on the House and Senate conferee selection process and will continue engaging all conferees when they are officially selected,” NAFCU Vice President of Legislative Affairs President Brad Thaler said.