WASHINGTON, DC (December 8, 2025) |
The Defense Credit Union Council, DCUC, expresses its disappointment that the latest text of the Fiscal Year 2026 National Defense Authorization Act (NDAA) excludes critical credit union provisions that were part of the Senate-passed version. These provisions, adopted with overwhelming bipartisan support in the Senate, would have strengthened the National Credit Union Administration’s (NCUA) Central Liquidity Facility (CLF) and enhanced the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund.
“Financial readiness is mission readiness, and by leaving out the CLF and CDFI provisions, Congress missed an opportunity to strengthen both our nation’s financial system and the defense community,” said Anthony Hernandez, DCUC President/CEO. “We are deeply disappointed that these bipartisan measures did not survive in the final NDAA. However, this outcome will not deter us. DCUC will continue to fight for these vital reforms because our servicemembers, veterans, and their families deserve the strongest financial support network we can provide.”
“While it’s unfortunate that the CLF and CDFI measures were dropped, our resolve to advocate for military-serving credit unions remains steadfast,” said Jason Stverak, DCUC Chief Advocacy Officer. “These commonsense reforms would allow mission-driven credit unions to expand access to capital, strengthen underserved communities, and ultimately bolster financial readiness for military families and veterans. We will continue working with lawmakers to find a path forward for these critical issues, whether through future defense bills or other legislative avenues.”
Central Liquidity Facility (CLF) Enhancements: The Senate’s NDAA had included a bipartisan amendment to permanently restore successful pandemic-era enhancements to the NCUA’s CLF. This measure, led by Senators Alex Padilla (D-CA) and Kevin Cramer (R-ND), would have expanded emergency liquidity access for smaller credit unions (including those serving military bases) by allowing corporate credit unions to act as agents, an authority that proved effective during COVID-19. When the temporary CLF enhancements expired at the end of 2022, thousands of credit unions lost access to this vital safety net. The Senate provision sought to reinstate that access at no cost to taxpayers, ensuring credit unions could continue supporting their members during financial crises
CDFI Fund Strengthening: The Senate-passed NDAA also contained a bipartisan CDFI reform package championed by Senators Steve Daines (R-MT), Mark Warner (D-VA), Mike Rounds (R SD), and Tina Smith (D-MN). This package would extend the Treasury’s CDFI Bond Guarantee Program, permanently authorize the Native American CDFI Assistance Program, and improve transparency and accountability in CDFI Fund operations. These reforms were designed to help mission-driven credit unions expand access to capital, strengthen underserved communities, and support financial readiness for military families and veterans. The absence of these CDFI provisions in the final NDAA means a missed opportunity to bolster community development efforts that benefit servicemembers and vulnerable communities alike.
DCUC is closely reviewing the final NDAA text for any additional provisions impacting credit unions and will update its members as new information emerges. In the meantime, DCUC remains committed to pursuing legislative solutions to strengthen the CLF and CDFI programs.