WASHINGTON, D.C. (December 20, 2024) |
The Defense Credit Union Council (DCUC) is pleased to see the introduction of two critical pieces of credit union legislation introduced Thursday by House Financial Services Ranking Member Maxine Waters (D-CA). The Central Liquidity Facility (CLF) Enhancement Act (H.R. 10510) and Expanding Financial Access for Underserved Communities Act (H.R. 10510), represent significant steps toward enhancing the resilience and accessibility of credit unions to better serve communities, including those in military and underserved populations.
DCUC strongly supports the Central Liquidity Facility (CLF) Enhancement Act, which seeks to make permanent temporary reforms to the NCUA’s CLF enacted during the pandemic. These reforms, which expired in 2021, provided essential liquidity support to credit unions, especially smaller institutions, during periods of economic uncertainty.
On November 20, DCUC wrote to congressional leaders, including Senate Democrat Leader Chuck Schumer, Senate Republican Leader John Thune, Speaker of the House Mike Johnson, and House Minority Leader Hakeem Jeffries, reaffirming the importance of permanently expanding the CLF to strengthen the financial stability of credit unions, better serve their members, and support local economies.
In the letter, DCUC outlined key benefits of CLF expansion, including enhanced access to liquidity during financial uncertainty; greater financial stability for the credit union system; critical support for small and community-based credit unions; and specific benefits for military families and underserved communities. DCUC also noted that these reforms align with the broader mission of credit unions to promote economic equity, prevent future financial crises, and ensure proactive financial preparedness.
Despite the House passing similar measures as part of the FY2023 National Defense Authorization Act, the reforms were not enacted.
The second bill introduced by Representative Waters, the Expanding Financial Access for Underserved Communities Act (H.R. 10510), would enable credit unions to broaden their membership reach under specific circumstances. DCUC supports this legislation as part of its ongoing mission to empower credit unions to serve more underserved populations effectively, without burdensome regulatory barriers.
"These bills represent a vital step forward for credit unions and the communities they serve," said Jason Stverak, DCUC Chief Advocacy Officer. "The CLF Enhancement Act ensures that credit unions can maintain the liquidity needed to support their members during times of financial stress, while the Expanding Financial Access for Underserved Communities Act allows us to extend our reach to those who need it most. DCUC is proud to have advocated for these measures and will continue working with policymakers to advance solutions that strengthen our industry and empower our members."
DCUC remains committed to working with Congress to ensure the success of these legislative priorities, reinforcing the critical role credit unions play in promoting financial resilience and expanding economic opportunities.
For more information, please visit dcuc.org/advocacy and contact Jason Stverak, DCUC Chief Advocacy Officer at jstverak@dcuc.org.