Committee Defense Bill Maintains Free Rent for CUs, But Not Banks
Learn why the FY24 defense authorization bill will maintain free rent benefits on military bases for credit unions, but not banks.
Department of Defense report cited by credit union trade group as key to outcome.
The FY24 defense authorization (NDAA) bill approved by House and Senate committees last week would continue to give credit unions—but not banks—free rent on military bases.
“We are very happy with the result in both the [House Armed Services Committee and the Senate Armed Services Committee],” said Anthony Hernandez, president/CEO of the Defense Credit Union Council.
Backstory and Context
This year, as in years past, banks have sought the same free rent benefit that credit unions receive on military bases.
Credit unions, conversely, have argued that only they deserve that benefit since they are cooperatives owned by their members.
And this year, credit union trade groups are armed with a Defense Department study that found servicemembers do not lack access to banking services on their bases. That report “disproves” the contention by banking trade groups, who have argued for many years, that servicemembers do not have adequate financial services.
What Comes Next?
“Since DoD sees no need to change the status quo, Congress can move on to more urgent national security concerns, particularly with all the recent national security issues,” Hernandez said.
He added that credit unions cannot declare victory until each house passes its bill and conferees reach agreement on a conference report and send it to the president.
“This is not over until the President signs the NDAA,” Hernandez said.