Sarah Snell Cooke, Founder/CEO, The Credit Union Connection
If you thought credit unions were just sitting on the sidelines while chaos unfolded in Washington, think again.
Senate passes FY2026 NDAA with critical CLF language
In a rare display of bipartisan cooperation (remember that?), the U.S. Senate passed the Fiscal Year 2026 National Defense Authorization Act on Oct. 9, with a solid 77-20 vote. But here’s the real tea: tucked inside this legislative package is the Central Liquidity Facility (CLF) Enhancement Act and essential provisions supporting Community Development Financial Institutions (CDFIs); the number of CDFI-certified credit unions has doubled in the last decade, according to Filene research in partnership with CU Strategic Planning.
“We thank the Senate for its leadership and strong bipartisan support in moving the FY26 NDAA forward,”DCUC CEO Anthony Hernandez said. “Including the CLF Enhancement Act is a meaningful step toward ensuring credit unions can better serve those who serve our nation.”
The CLF is a backup liquidity source for credit unions managed by the NCUA. Special shoutout to Senators Padilla and Cramer for championing this amendment and getting it across the finish line.
And more for the CDFI and credit unions, too!
Senator Steve Daines (R-MT) reintroduced the CDFI Fund Transparency Act with Senators Mark Warner (D-VA), Mike Crapo (R-ID) and Raphael Warnock (D-GA) as original cosponsors. The amendment requires the Secretary of the Treasury to testify annually before the Senate Banking and House Financial Services Committees regarding the operations of the CDFI Fund during the previous fiscal year.
In addition to the CDFI Fund Transparency Act, the Daines/Warner NDAA amendment includes three other critical bipartisan CDFI priorities:
- Scaling Community Lenders Act (Warner/Crapo)
- CDFI Bond Guarantee Improvement Act (Smith/Rounds)
- Native CDFI Relending Program Expansion – Section 301 of the Rural Housing Service Reform Act of 2025 (Smith/Rounds)
“Transparency builds trust among decision makers and the public, America’s Credit Unions CEO Jim Nussle said in support. “The Community Development Financial Institutions (CDFI) Fund plays a critical role in strengthening vulnerable Americans, low-income and underserved communities. It must remain focused on its mission…. The provisions within this bill are essential to ensuring the CDFI Fund continues its impact for millions of Americans in need, and we urge Congress to advance and pass this legislation.”
DCUC Chief Advocacy Officer Jason Stverak added, “Credit unions deliver enormous value to their members and communities. Bipartisan support for the CDFI Fund proves just how vital they are to our nation’s financial health and security.”
Now the ball’s in the court of House and Senate negotiators as they hammer out the final version of the NDAA. Credit unions will be watching like hawks.
Credit unions further earned their tax exemption during the government shutdown
When the government shutdown on Oct. 1, and the political parties were busy pointing fingers, credit unions rolled up their sleeves.
After Ranking Member Maxine Waters sent a letter on Oct. 8, urging the financial industry to support federal employees and servicemembers during the shutdown, DCUC quickly responded with appreciation.
Here’s what that looks like in action: From the moment a shutdown seemed likely, DCUC activated its nationwide network of credit unions (more than 200 strong, serving 40+ million members). The association fired up its Government Shutdown Resource Center, launched last year and battle-tested, providing member credit unions with communication templates, best practices and member outreach tools.
Since October 1, credit unions have deployed serious financial support for members, including:
- 0% and low-interest emergency loans
- Payment deferrals and other loan modifications
- Fee waivers
- Free financial counseling
- Outreach to potential members regarding assistance
These programs represent millions of dollars in direct relief for military families and government employees – real money helping real people avoid credit damage, bridge pay gaps and maintain financial stability during the shutdown.
MD|DC Credit Union Association CEO John Bratsakis highlighted, “We heard from the Maryland Governor’s Office and from members of our congressional delegation who were looking for information to share with impacted constituents. Though our advocacy work and the trusted relationships that we have built, alongside America’s Credit Unions and the League system, policymakers know credit unions are on the front lines, ready to help, especially in challenging times. From day one, even hour one, credit unions were putting members first. That’s what credit unions do every day.”
Credit unions continue pushing for permanent solutions because the recurring shutdown threats are getting old.
The Bottom Line
Credit unions have been advocating for CLF modernization forever to help them continue serving members during financial disruptions, as well as supporting pro-CDFI credit union initiatives.
At the end of the day, while Washington plays games, credit unions are in the trenches to ensure families can keep the lights on and food on the table. That is the mission.
“We stayed focused throughout the NDAA process to have Congress include measures that would help credit unions, while also protecting against amendments that would cause harm to credit unions and their members,” Nussle said. “America’s Credit Unions is committed to ensuring the final NDAA bill brings significant, positive changes to empower credit unions and their members.”