DCUC Pushes Senate To Restore Key Emergency Liquidity Tool For Credit Unions
By CU Today Staff —
WASHINGTON—The Defense Credit Union Council is urging the Senate to include long-sought reforms to the National Credit Union Administration's Central Liquidity Facility in the Fiscal Year 2027 National Defense Authorization Act, arguing the changes would strengthen both military financial readiness and the resiliency of credit unions that serve servicemembers and veterans.
In a letter to Senate Armed Services Committee leaders, DCUC Chief Advocacy Officer Jason Stverak expressed support for a bipartisan amendment offered by Sens. Alex Padilla (D-CA) and Kevin Cramer (R-ND) that would permanently restore enhancements to the CLF. Stverak said the proposal represents a "practical and proven solution" that would strengthen credit union liquidity while supporting military families who rely on defense credit unions for financial services.
As CUToday.info recently reported, DCUC has made restoration of the pandemic-era CLF enhancements a top legislative priority, arguing the expiration of those authorities at the end of 2022 significantly weakened the credit union system's emergency liquidity capacity. According to DCUC, temporary reforms enacted during COVID-19 expanded access to the facility from roughly 283 credit unions to more than 4,100 institutions nationwide.
"Financial readiness remains a cornerstone of military readiness," Stverak wrote, noting that financial instability can affect deployment readiness, retention, mission performance and overall force effectiveness. He said defense credit unions serve as critical financial partners during deployments, government shutdowns, natural disasters and other emergencies, making access to a reliable liquidity backstop essential.
Stverak said more than 3,300 credit unions lost access to the CLF when the temporary enhancements expired, reducing available emergency liquidity capacity by nearly $10 billion. The Padilla-Cramer amendment would permanently restore those authorities, allowing corporate credit unions to once again facilitate broader participation in the facility and improving preparedness for future economic disruptions.
Stverak also emphasized that the proposal carries no cost to taxpayers because the CLF is funded by the credit union system itself. Stverak urged senators to adopt the amendment during consideration of the NDAA, arguing it would strengthen military financial readiness, improve financial-system resilience and ensure defense credit unions have the tools needed to continue serving military communities during periods of stress and uncertainty.
"DCUC's support for strengthening and modernizing the Central Liquidity Facility is longstanding and unwavering," wrote Stverak. "For years, our organization has been among the nation's leading advocates for permanent CLF reform, recognizing the facility's essential role as the credit union system's lender of last resort and a critical safeguard for the military communities our member institutions serve. DCUC has consistently supported legislative efforts to restore and expand access to the CLF, worked alongside bipartisan champions in Congress, submitted multiple letters of support, and advocated for inclusion of these reforms in prior National Defense Authorization Acts. We were proud to support Senate adoption of similar CLF provisions during consideration of the FY2026 NDAA and continue to believe these reforms represent one of the most important actions Congress can take to strengthen the financial resilience of military communities and the credit unions that serve them."
Originally reported by CU Today.