The U.S. Capitol. Credit: Shutterstock
The Senate Armed Services Committee has advanced its fiscal year 2027 National Defense Authorization Act without including provisions opposed by credit unions, a development welcomed by America's Credit Unions as Congress continues work on one of its annual must-pass bills.
The committee voted 18-9 to approve its version of the NDAA, following similar action by the House Armed Services Committee last week. Neither bill includes amendments that would alter the current interchange system or affect credit union branch access on military installations.
Ahead of the Senate markup, America's Credit Unions sent a letter urging lawmakers to protect two longstanding industry priorities: preserving the Department of Defense's nominal lease program for credit union branches located on military bases and rejecting any amendments related to payments or interchange fees.
The trade group argued that credit unions play a unique role in serving military members, veterans and their families, often providing financial services in locations where traditional banking options may be limited. The organization pointed to a recent Defense Department report that found no justification for changing the current nominal lease structure, which allows credit unions to maintain a presence on military installations.
America's Credit Unions also warned against attaching interchange-related legislation to the defense bill, including proposals modeled after the Credit Card Competition Act. The group said previous interchange regulations under the Durbin Amendment reduced revenue available for financial institutions to invest in consumer services and payments innovation, while providing little evidence of savings being passed on to consumers.
With both chambers now advancing NDAA legislation free of major credit union concerns, industry advocates will continue monitoring the measure as lawmakers work toward a final compromise bill later this year.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.