By Ray Birch
WASHINGTON—The Defense Credit Union Council Sunday sharply criticized the exclusion of key credit union provisions from the final text of the Fiscal Year 2026 National Defense Authorization Act (NDAA), saying Congress stripped out bipartisan Senate-backed measures that would have strengthened the NCUA’s Central Liquidity Facility and expanded the Treasury Department’s Community Development Financial Institutions Fund.
DCUC said the removals weaken emergency liquidity access for military-serving credit unions and undermine capital access for underserved defense communities.
The omissions come despite weeks of advocacy and warnings that the financial-services title of the NDAA was under heavy negotiation, as House and Senate leaders worked toward a targeted mid-December passage, CUToday.info previously reported. DCUC leaders had cautioned that opposition to banking and housing-related provisions—particularly from House Financial Services Chairman French Hill—risked derailing both the CLF and CDFI reforms, even as the core military portions of the bill were nearing completion.
“The Defense Credit Union Council expresses its disappointment that the latest text of the Fiscal Year 2026 National Defense Authorization Act excludes critical credit union provisions that were part of the Senate-passed version,” the trade group stated. “These provisions, adopted with overwhelming bipartisan support in the Senate, would have strengthened the National Credit Union Administration’s Central Liquidity Facility and enhanced the U.S. Treasury’s Community Development Financial Institutions 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.”
Senate NDAA
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 added that it 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 said it remains committed to pursuing legislative solutions to strengthen the CLF and CDFI programs.
America's Credit Unions Reacts
“After a thorough review of the NDAA text, we are pleased to see that nothing in the bill is harmful to credit unions," stated Scott Simpson, America's Credit Unions president/CEO. "Because policy differences between the House and Senate led to the omission of a Financial Services title, and with it the CLF, CDFI, CBDC, and ROAD to Housing provisions, the final package remains neutral for our industry. While there appear to be no setbacks for credit unions in this legislation, we are reviewing the full text for any impacts. We are disappointed that several constructive measures we supported were ultimately left out. Rest assured, we will continue working with lawmakers to advance these priorities through other vehicles."