The House passed its version of the Fiscal Year (FY) National Defense Authorization Act (NDAA) by a vote of 231-196. The bill did not include certain amendments supported by community banking and credit unions advocates.
The bill left out amendments seeking to expand funding for Community Development Financial Institutions (CDFI), which was supported by some financial trade organizations including the Independent Community Bankers of America (ICBA) and America’s Credit Unions (ACU).
ICBA wrote a letter to congressional leaders earlier this month expressing support for the inclusion of the CDFI Fund Transparency Act, the CDFI Bond Guarantee Improvement Act of 2025, the Scaling Community Lenders Act, and a provision of the Rural Housing Service Reform Act of 2025 supporting Native CDFIs.
However, not all the amendments left on the cutting-room floor brought disappointment for financial institutions.
ACU President and CEO Jim Nussle praised the House for not including certain proposed amendments he asserted would be harmful to credit unions, such as the Credit Card Competition Act. The measure would require institutions with more than $100 million in total assets to offer at least two different payment network options on their credit cards, rather than exclusively relying on Visa and Mastercard.
“While the intent of the Durbin Amendment was to prevent card-issuers and networks from unfairly charging merchants higher rates and thus passing higher costs along to consumers, the evidence overwhelmingly suggests that it has not helped everyday Americans,” Nussle wrote. “As consumers are struggling to afford the cost of basic goods and services due to surging inflation, big box retailers should not be considering ways to put consumer spending at risk by interfering with the efficient way credit cards work today.”
Nussle indicated his organization remains hopeful the Senate will decide to include amendments related to CDFI transparency and access to long-term liquidity, as well as language exempting loans made to veteran-owned businesses from the credit union member business lending cap and provide small credit unions with easier access to emergency liquidity through the National Credit Union Administration’s Central Liquidity Facility.
The bill’s passage came days after the U.S. Treasury announced it was considering requiring CDFI Fund applicants to disclose whether requested funds would be used for purposes related to diversity, equity and inclusion or climate issues.
The bill was supported by all but four Republicans and only 17 Democrats. House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) issued a stark rebuke of House Speaker Mike Johnson (R-La.) for blocking all amendments submitted by Democrats, including one proposing to restore the funding for the Consumer Financial Protection Bureau, which was cut in the House’s 2026 budget package.