Newsroom

July 15, 2019

House passes NDAA without nominal lease changes

Capitol HillThe House Friday passed its version of the fiscal year 2020 National Defense Authorization Act (NDAA). Unlike the Senate version, it does not include the NAFCU-opposed provision that could allow big banks to be treated the same as a military installation's local not-for-profit defense credit union.

Lawmakers will now have to work on reconciling differences between the House and Senate versions. NAFCU Vice President of Legislative Affairs Brad Thaler sent a message to defense credit unions following the House vote reiterating NAFCU's staunch opposition to nominal lease changes and encouraging credit unions to continue contacting their lawmakers to ensure the provision is not included in the final bill that will have to be passed by both chambers.

NAFCU has a grassroots advocacy campaign available for credit unions to contact their representatives and senators directly on the issue.

NAFCU has consistently advocated against banks' efforts to gain access to rent-free leases on military installations as it could disadvantage credit unions. In April – as the Senate and House Armed Services Committee scheduled work on the FY2020 NDAA – the association proactively urged lawmakers to not include the provision in this year's bill.

NAFCU's and credit unions' advocacy led Rep. Trent Kelly, R-Miss., to withdraw an amendment that would have required the Department of Defense (DoD) to treat all banks the same as credit unions when it comes to land leases during the House Armed Services Committee's markup of the bill in June. No amendment – out of more than 650 filed – considered by the House Rules Committee prior to the full chamber's vote attempted to add the provision.

Last year, the association's efforts led House and Senate conferees of the FY2019 NDAA to drop the provision regarding bank leases on military installations.