May 23, 2014

House passes 2015 defense spending

May 27, 2014 – The House version of the National Defense Authorization Act to fund the Department of Defense through 2015 passed Thursday with a vote of 325-98 and does not negatively impact those credit unions that serve servicemembers.

NAFCU Military Liaison Quincy Enoch pointed out a positive development for credit unions within the House-passed NDAA regarding the leasing provision for credit unions located on bases. Currently, financial institutions located on military bases are subject to competition from other financial institutions when their leases expire. A provision in this House-passed NDAA excludes the competition clause so credit unions operating on military bases can keep renewing their leases.

The bill now heads to the Senate, where the Armed Services Committee is finishing its mark-up of the defense bill.

Politico reported that the White House has threatened to veto the House-passed bill because of its Guantanamo Bay restrictions. Rep. Adam Smith, D-Wash., ranking member on the Armed Services Committee, put forth an amendment that would have put in place a plan to close the Guantanamo Bay prison by the end of 2016. The House defeated the measure.

These issues will be discussed during NAFCU's Defense Credit Union Summit held in conjunction with this year's Annual Conference and Solutions Expo in Las Vegas. The half-day summit, exclusively for DoD-related credit unions, will include remarks from defense leaders on the most pressing defense issues.