ABA wrote to House Armed Services Committee leaders today in support of an amendment added to the National Defense Authorization Act for Fiscal Year 2019 that would help level the playing field between credit unions and banks serving military bases.
Banks are currently required pay rent for the use of facilities on military bases according to a “fair market value” determined on a facility-by-facility basis, “often times with ineffective and unfair outcomes, forcing many banks to leave military bases in recent years,” ABA pointed out. The amendment would require the Department of Defense to accept the value of services provided by military banks as full payment on any lease, service and utility costs for the space they occupy on military installations. Credit unions have enjoyed this benefit for more than 10 years, ABA noted.
