Congress Should Reject Any Extension of CU-DoD Ground Lease Arrangement | 2022-06-07
The House Armed Services Committee should reject any bank attempt to split the ground lease agreement between the Department of Defense and credit unions, CUNA and other organizations wrote Tuesday. The House Armed Services Subcommittees begin Annotations of the National Defense Authorization Act of Exercise 23 (NDAA) this week.
“While the banks argue for ‘parity’ on this issue, the fact is that banks can already obtain leases at nominal cost,” the letter read. “Under the Military Leasing Act, 10 USC §2667, banks can demonstrate to DoD how they would use their lease to serve and bring value to the men and women of the base. However, the banks have still not exercised this authority.
“We believe that the DoD study led by the House Armed Services Committee last year will demonstrate this fact as well as the many choices available to the military in finding and selecting a trusted financial institution,” he adds. “However, rather than seek a productive solution available to them under current law, the banking lobby is choosing to target their longtime enemy credit unions in the process. As such, we hope that the House Armed Services Committee will reject the inclusion of this provision in the NDAA if it resurfaces this year.
The banks attempted to insert such language in previous NDAAs, but no provision was included in the final bills.
CUNA coordinated the letter with the Defense Credit Union Council and the National Association of Federally-Insured Credit Unions.