Sending Office: Honorable Jackie Speier
Sent By:
Mitchel.Hochberg@mail.house.gov

Dear Colleague,

In advance of Fiscal Year 2020 National Defense Authorization Act (NDAA) conference negotiations, please join us in sending a letter to the Chairmen and Ranking Members of the House and Senate Armed Services Committees raising concern over Section 2821 of
the Senate-passed bill, S. 1790.

Section 2821 would reverse the Department of Defense’s policies with respect to the treatment of financial institutions that operate on military installations. Specifically, it would empower for-profit financial institutions to be allotted space or leased
land on a military installation without charge for rent or services, much like not-for-profit credit unions.

Moreover, Section 2821 is unnecessary due to the fact that for-profit institutions may seek waivers for the cost of land leases under current law. Additionally, the Department of Defense did not request the changes contained in Section 2821 and has opposed
such changes previously.

I urge you to join us in signing the letter below expressing concern over Section 2821 of the Senate-passed NDAA, S. 1790, prior to conference negotiations.  If you would like to sign the letter or have any questions, please contact Mitchel Hochberg of Rep.
Speier’s staff at mitchel.hochberg@mail.house.gov or Colby Kuhns on Rep. Cook’s staff at Colby.Kuhns@mail.house.gov. 

Sincerely,

 

                                    Jackie Speier                                                Paul Cook

                            Member of Congress                                Member of Congress

 

Dear Chairman Smith, Chairman Inhofe, Ranking Member Thornberry, and Ranking Member Reed,

In advance of the Fiscal Year 2020 National Defense Authorization Act conference, we write to express concern regarding Section 2821 of S.1790, the National Defense Authorization Act for Fiscal Year 2020, which would reverse the Department of Defense’s policies
regarding the treatment of financial institutions that operate on military instillations. Specifically, it would empower for-profit banks to be allotted space or leased land on the military installation without charge for rent or services in the same manner
as a credit union organized under state or federal law.

Current laws allows for similar treatment of banks.  Under 10 U.S.C. §2667, banks can seek waivers for the cost for land leases—as well as administrative and logistical fees—on military installation. Section 124 of the Federal Credit Union Act, 12 U.S.C.
1770 allows credit union to be allotted rent free on military installations.  Military installation base commanders grant such waivers to banks and credit unions on a case-by-case basis. As such, Section 2821 is unnecessary.

Moreover, the Department of Defense did not request the changes contained in Section 2821. In fact, the Department has previously opposed such changes.

H.R.2500, the National Defense Authorization Act for Fiscal Year 2020, contains no similar language.  As the House and Senate negotiate their differences, we respectfully request that the Senate recede to the House position on Section 2821 of the Senate-passed
bill.

Thank you for the opportunity to share our views.

 Sincerely,

 

Related Legislative Issues

Selected legislative information: Armed Services, Economy, Finance

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