Removing Barriers Blog

Alaska FCU Writes to Senator Sullivan Re: NDAA FY 2019
Posted July 19, 2018 by CUNA Advocacy

Earlier this week, President and CEO of Alaska Federal Credit Union, Geofferey Lundfelt wrote to Senator Sullivan of Alaska regarding the Senate's work on the National Defense Authorization Act (NDAA) FY 2019.

"Since 2006, the Department of Defense has had the discretionary authority to allow credit unions to utilize office space and/or land (including ATM placement) on military bases on a rent-free or nominal basis. Credit unions who wish to do so must meet specific statutory and regulatory requirements regarding the provision of financial services to the base population, and the decision as to whether or not to provide such space remains solely within the discretion of DoD. At this time, both Alaska USA and MAC Federal Credit Union serve service-members and their families at Joint-Base Elmendorf Richardson in Anchorage and Fort Wainwright in Fairbanks under leases of this nature."

In the letter, Mr. Lundfelt voiced his concern about the impact Section 2808 will have on stakeholders.  This provision was intended to treat credit unions and banks equally with respect to the financial terms of lease, services, and utilities on military installations. Unfortunately, as currently written – due to a drafting error, this provision excludes credit unions from the definition of “insured depository institutions.”

In closing he wrote, "We ask that you work diligently in conference to remove this language completely from the final version of the bill. This will allow all of the affected parties to come together to work on a path forward that is truly in the best interest of our armed forces."

CUNA, the Leagues, and credit unions across the country will continue to advocate for this drafting error to be stricken before the NDAA FY 2019 bill is signed into law.  Just last week, four Members of Congress wrote to Armed Services Committee leadership in support of striking this section.