Advocacy win: Senate advances NDAA with CLF, CDFI amendments

The Senate passed its version of the FY26 National Defense Authorization Act (NDAA) by a vote of 77-20 last night. It includes two amendments championed by America’s Credit Unions –to provide enhancements to the NCUA’s Central Liquidity Facility (CLF) and to enhance support for the Community Development Financial Institutions (CDFI) Fund. America’s credit unions led the credit union efforts to see these provisions added to the defense package by backing them early while many were arguing for a clean defense policy measure.  America’s Credit Unions President and CEO Jim Nussle previously wrote in support of the CLF and CDFI measures as the Senate began its consideration of the defense package earlier this year.

In advance of the Senate’s NDAA vote, America’s Credit Unions spearheaded efforts encouraging senators to reject an amendment offered by Senator Rand Paul (R-Kent.) that would have prohibited the Federal Reserve from paying interest on deposits held at reserve banks by financial institutions. Nussle wrote to the Senate ahead of the vote, noting how the amendment would have a “devastating impact on community financial institutions like credit unions.”  Over 1200 credit unions benefit from these interest payments. The Senate rejected the Paul amendment by a vote of 14-83.

The Senate version of the NDAA also did not include any provisions relating to interchange after an intense lobbying campaign by America’s Credit Unions and the credit union industry.

Responding to the Senate action yesterday, Nussle thanked the champions of the pro-credit union amendments for their ongoing support. The CLF amendment is based on bipartisan legislation from Sens. Alex Padilla, D-Calif., and Kevin Cramer, R-N.D.  

“Credit unions are our nation’s financial first responders, taking quick action to help our communities through hard times by providing personally tailored low-rate services. But when credit unions need access to emergency resources in challenging financial times, current federal restrictions make it difficult for institutions to get the emergency assistance they need to keep the lights on and continue supporting their community,” said Nussle. “We thank Senators Padilla and Cramer for their support of our ‘people helping people’ mission and recognizing how vital it is for credit unions to be able to take quick action. If enacted, this amendment will allow credit unions easier access to critical emergency liquidity through the NCUA’s Central Liquidity Facility. We appreciate the Senate for working with America’s Credit Unions to ensure that credit unions will be able to get the help they need so they can help their members."

The CDFI amendment is based on bipartisan legislation from Sens. Steve Daines, R-Mont., Mark Warner, D-Va., Mike Crapo, R-Idaho, and Raphael Warnock, D-Ga.

“Credit unions are often the financial backbone in vulnerable communities, providing services at lower rates and with affordable terms. While banks and other financial institutions regularly abandon these areas in search of higher profits, credit unions remain a key community partner and actively help their members reach their goals,” Nussle added. “The credit union movement thanks Senator Daines, along with cosponsoring Senators Warner, Rounds, Smith and Crapo, for their work to include the Community Development Financial Institutions (CDFI) package in the Senate NDAA. This amendment will help CDFIs better serve their communities and ensure Congress is performing their oversight responsibilities for the CDFI Fund.”

The House passed its version of the NDAA in September without any harmful amendments credit unions fought to exclude. The two chambers will meet in conference committee to agree on a version to send to the president.