Removing Barriers Blog

Letter sent to House Armed Services Committee re: NDAA FY2020
Posted June 11, 2019 by CUNA Advocacy

Earlier today, CUNA wrote to the House Armed Services Committee leadership urging them to reject language in FY2020 National Defense Authorization Act that would expand exemptions from costs related to leases, utilities and services on military bases for financial institutions. 

Under the Federal Credit Union Act of 1996, the Department of Defense is granted the discretionary authority to waive the cost of credit union land leases, as negotiated between each military installation’s base commander and a given credit union. This exemption is restricted in scope to credit unions whose field of membership is at least 95% composed of individuals who are or were at the time of admission into the credit union military personnel, federal employees, or family of those who are or were.

The letter states,

"This exemption is not guaranteed for every credit union on every military base. It is a negotiation between that military installation’s base commander and that specific credit union. Furthermore, this exemption is limited in scope to credit unions if at least 95 percent of the membership to be served by the allotment of space or the facility built on the lease land is composed of individuals who are, or who were at the time of admission into the credit union, military personnel or federal employees, or members of their families."

"As the only member-owned, not-for-profit, democratically controlled option in financial services, credit unions' mission is to promote thrift and provide access to credit for members. It is a mission they have fulfilled for more than 70 years and it’s a mission that remains unchanged today. Credit unions are focused on ensuring the financial readiness of our service members and their families."

The letter also points out that are afforded similar exemption under Title 10 of the U.S. Code, though rarely exercise the opportunity.

The CUNA/League system continues to engage lawmakers on how best to serve and uplift the financial wellbeing of America’s servicemembers