Defense Bill Would Establish Military-Banking Parity

Jul 01, 2019
The Senate passed a defense spending bill with an ICBA-supported provision promoting parity between banks and credit unions on military bases.

The $750 billion appropriations bill would require the Defense Department to treat banks and credit unions operating on a military installation within the continental United States equally with respect to the financial terms of leases, logistical support, services, and utilities. To receive equal treatment, both must serve on-base and have a customer base that is at least 95 percent composed of military personnel, federal employees, and their families.

Banks on military bases are required to pay rent for the use of facilities, though credit unions may operate rent-free. The House version of the National Defense Authorization Act does not include similar language. ICBA will continue working with Congress to include this pro-community bank language in the final spending bill.

Meanwhile, ICBA continues calling on community bankers to urge Congress to investigate the trend of large credit unions buying up community banks. Community bankers can also send in examples of egregious credit union actions to and use ICBA's customizable op-ed and talking points to raise awareness of the issue.

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