DCUC Urges FY2027 NDAA Inclusion Of CLF Enhancement, AFFORD Act To Strengthen Military Financial Readiness
By CU Today Staff —
WASHINGTON—This week, the Defense Credit Union Council engaged Senate Armed Services Committee leaders and key Senate offices to express strong support for two bipartisan policy priorities for inclusion in the Fiscal Year 2027 National Defense Authorization Act (NDAA).
In official comments submitted to Committee Chairman Roger Wicker and Ranking Member Jack Reed, DCUC expressed support for including the amendment's CLF Enhancement Act provisions in the Fiscal Year 2027 National Defense Authorization Act (NDAA).
DCUC noted it has long supported permanent reforms to the CLF, recognizing its role as the credit union system's lender of last resort and a critical source of stability for military communities and during periods of economic stress.
“CLF modernization is not merely a regulatory issue, it is a military readiness issue…Defense credit unions play a critical role in supporting military families through deployments, permanent changes of station, government shutdowns, natural disasters, economic disruptions, and other emergencies,” DCUC wrote. “Ensuring these institutions have access to a robust and reliable emergency liquidity backstop helps guarantee uninterrupted access to affordable financial services when military families need them most.”
“Congress witnessed the value of a stronger CLF framework during the COVID-19 pandemic,” wrote DCUC Chief Advocacy Officer Jason Stverak. “Temporary enhancements enacted by Congress dramatically expanded access to the facility by allowing corporate credit unions to serve as agent members and facilitate participation for smaller institutions. These reforms increased access from approximately 283 credit unions to more than 4,100 institutions nationwide.
“Many of these institutions serve military installations, veterans, rural communities, and underserved populations that rely heavily on credit unions for financial services. Unfortunately, when those enhancements expired at the end of 2022, more than 3,300 credit unions lost access to this critical liquidity resource. The expiration also reduced available emergency liquidity capacity by nearly $10 billion. DCUC has repeatedly warned that allowing these authorities to lapse weakened the resilience of the credit union system and diminished the ability of defense credit unions to respond effectively during future emergencies. The Padilla-Cramer amendment would permanently restore these proven authorities and ensure credit unions can continue serving their members during periods of economic stress and uncertainty,” continued Stverak.
“Modernizing the Central Liquidity Facility within the NDAA is a smart, proactive readiness priority,” said Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. “It ensures defense credit unions can continue doing what they do best, supporting servicemembers, veterans, and their families through every need or challenge they face. When financial stress hits, readiness matters, and this amendment helps ensure these institutions are always prepared to serve those who serve our Nation.”
Additionally, DCUC wrote to Senator Mark Warner (D-VA) expressing support for the Access to Fair Financing for Opportunity and Resilient Development (AFFORD) Act, highlighting the legislation’s role in expanding housing affordability, strengthening Community Development Financial Institutions (CDFIs), and improving financial readiness for military families and underserved communities.
“Credit unions continue to serve as key financial partners for military members, veterans, and families, especially as they continue to face significant housing affordability challenges,” said Hernandez. “These communities are navigating frequent permanent change of station (PCS) moves, limited housing availability near installations, and escalating rental and homeownership costs. Financial stress remains a leading factor that can affect military readiness, retention, and long-term force resiliency.”
In the letter, Stverak explained that the AFFORD Act would strengthen CDFIs by expanding access to capital, enhancing the CDFI Bond Guarantee Program, and improving liquidity tools available to mission-driven lenders.
“These provisions would help finance affordable housing construction, support small business development, and increase investment in underserved communities, including those near military installations and in rural areas,” Stverak wrote.
DCUC added it also supports provisions enhancing oversight and transparency of CDFI programs, as well as targeted investments in Native Community Development Financial Institutions, which serve communities with strong military service traditions and persistent barriers to housing and credit access.
“Financial readiness is inseparable from military readiness,” reminded Hernandez. “The AFFORD Act strengthens the financial foundation that allows military families to stay focused on their mission and build long-term stability during and after service."
Originally reported by CU Today.