Despite the turmoil related to the gap in federal funding (government shutdown), credit unions saw success in our advocacy efforts in Congress with the inclusion of amendments in the Senate passed version of the FY26 National Defense Authorization Act (NDAA). The provisions, championed by the Nebraska Credit Union League (NCUL) and leagues across the country, provide enhancements to the NCUA’s Central Liquidity Facility (CLF) and to enhance support for the Community Development Financial Institutions (CDFI) Fund.
NCUL members shared their support for these provision directly with key legislators like Senator Deb Fischer during Hike the Hill 2025. Ahead of the vote, the Nebraska Credit Union League’s Advocacy team engaged directly with the staff of Senators Fischer and Ricketts to highlight the importance of the CLF provisions and ensure the credit union perspective was well understood.
The text of S. 2545, the NCUA Central Liquidity Facility Enhancements Act, gives more credit unions access to the CLF by reinstating provisions that Congress has previously granted to credit unions but allowed to sunset.
Key CDFI-related measures in the Senate’s FY2026 NDAA include:
- CDFI Fund Transparency Act: An amendment aimed at improving oversight, accountability, and clearer reporting within the CDFI Fund. Specifically, it would require annual Congressional testimony on the Treasury’s Community Development Financial Institutions (CDFI) Fund’s operations and activities.
- Scaling Community Lenders Act: Provides liquidity and funding to increase lending in underserved communities. It aims to achieve this through initiatives like creating a secondary market for CDFI loans, reviving liquidity programs, and providing tax credits for investors in CDFIs.
- CDFI Bond Guarantee Improvement Act: This provision reduces the minimum loan size from at least $100 million to $25 million. It also removes the annual limit on guarantees to allow smaller CDFIs to use the program and to support more community development projects.
However, advocacy efforts are still ongoing as it relates to the administration of the Community Development Fund. (See October Affiliate article on Government Shutdown.)
Advocacy efforts also help exclude any harmful amendments relating to interchange from both the House and Senate versions of the NDAA. The two chambers will meet in conference committee to agree on a version to send to the president.
