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NAFCU, trades write to Senate Armed Services Committee to share CU concerns on NDAA
NAFCU Tuesday joined the Defense Credit Union Council and CUNA in a letter to the Senate Armed Services Committee (SASC) vocalizing credit union concerns with potential amendments that could be added to SASC’s version of the fiscal year 2023 National Defense Authorization Act (NDAA) of the final NDAA conference report. Throughout the letter, the group reiterated opposition to language that would provide the NCUA with third-party vendor authority, while supporting the inclusion of the Secure and Fair Enforcement (SAFE) Banking Act, the Central Liquidity Facility Enhancement Act, and the Fair Hiring in Banking Act.
The groups noted that they do not support the inclusion of the Senate’s Improving Cybersecurity of Credit Unions Act, nor a House amendment that includes the text of the Strengthening Cybersecurity for the Financial Sector Act, as they extend additional supervisory authority to the NCUA, requiring more funding for the agency that credit union members would have to fund and could be used elsewhere.
Additionally, the group wrote in support of the SAFE Banking Act that passed “overwhelmingly” as an amendment in the House version. This legislation would allow Congress to provide greater clarity and legal certainty at the federal level for credit unions that choose to provide financial services to state-authorized marijuana-related business (MRBs) and ancillary businesses that may serve businesses in states where such activity is legal.
In addition, the groups expressed their support for both the Central Liquidity Facility Enhancement Act, which would make the provisions in the Coronavirus Aid, Relief and Economic Security (CARES) Act related to NCUA Central Liquidity Facility (CLF) permanent; and the Fair Hiring in Banking Act, which would allow for greater employment opportunities at federally insured financial institutions by reducing barriers to employment based on past criminal offenses.
Of note, the House passed its version of the FY23 NDAA in July, and the full Senate has yet to take up the SASC version. The Senate may not bring the bill to the floor until after the 2022 elections.
House and Senate Armed Services leaders are expected to discuss what should be included in the final bill in a “pre-conference” where they may settle several issues before the Senate considers the bill. In this case, the House and Senate would negotiate and likely bring one final bill to the floor of both chambers for a vote later this year.
NAFCU will continue to engage Congress on the FY2023 NDAA on these issues and more as the legislation works through the process.