Nussle defends tax status of all credit unions to key policymakers

America’s Credit Unions President/CEO Jim Nussle wrote to members of Congress on why an alternative approach is preferred to a proposed amendment to the House FY2025 National Defense Authorization Act (NDAA) that would clarify military members under the Department of Defense’s Overseas Military Banking Program (OMBP)—but only OMBP members—are insured by the National Credit Union Share Insurance Fund (NCUSIF).

Nussle wrote to Reps. Pete Sessions, R-Texas, Young Kim, R-Calif., and Gerry Connolly, D-Va., who submitted the amendment, which is currently among around 1,200 others currently being considered by the House Rules Committee.

“While the language will solve the particular problem of federal share insurance for the OMBP, it still leaves open the question about future situations where a credit union may act as a fiscal agent in other capacities for DoD or the broader federal government,” Nussle wrote, adding it would be more appropriate to amend the Federal Credit Union Act to clarify that all credit union accounts provided as a fiscal agent in a government contract can be insured through the NCUSIF.

Nussle provided suggested amendment text that would also establish an Advisory Panel on Military Banking to review the OMBP and the general availability of financial services to members of the armed forces.

 

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