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Credit union leaders expressed both disappointment and relief following Monday’s release of the final Fiscal Year 2026 National Defense Authorization Act (NDAA), after congressional negotiators removed a slate of bipartisan financial services provisions that would have strengthened liquidity, expanded community development funding and bolstered support for military families.
The Defense Credit Union Council (DCUC) sharply criticized the omissions, noting that measures enhancing the National Credit Union Administration’s Central Liquidity Facility (CLF) and modernizing the Treasury’s Community Development Financial Institutions (CDFI) Fund had passed the Senate with overwhelming bipartisan support but were stripped out in final negotiations.
“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,” DCUC President/CEO Anthony Hernandez said. The CLF amendment would have restored pandemic-era authorities that expanded emergency liquidity options for small credit unions, including those serving military installations. The CDFI package would have improved access to capital for underserved military communities and extended programs benefiting Native and rural defense communities.
DCUC Chief Advocacy Officer Jason Stverak said the group will “continue working with lawmakers to find a path forward,” adding that the reforms were vital for military families facing rising costs, frequent relocations, and predatory lending threats.
America’s Credit Unions President/CEO Scott Simpson offered a more tempered response, calling the final bill “neutral” for the industry. While the Senate’s Financial Services title, which also included CBDC guardrails and affordable housing provisions, was removed due to policy differences between chambers, Simpson emphasized that “nothing in the bill is harmful to credit unions.”
“We are disappointed that several constructive measures we supported were ultimately left out,” Simpson said, “but we will continue working with lawmakers to advance these priorities through other vehicles.”
Both organizations said they will closely review the legislation for additional impacts and re-engage Congress in 2026.
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