Credit unions can celebrate a significant legislative victory this week with the exclusion of the Credit Card Competition Act (CCCA) from the U.S. House and Senate versions of the National Defense Authorization Act (NDAA) for fiscal year 2026. A handful of pro-credit union amendments also received positive traction.
The CCCA — often referred to as the “Big Box Bailout” — would have created new credit card interchange mandates that credit union leaders argued would benefit large retailers at the expense of consumers and financial institutions. By eroding financial safeguards, this measure would enrich major retailers without guaranteeing benefits to consumers.
“This victory is a testament to our credit unions’ persistent advocacy,” said Stephanie Cuevas, senior vice president of federal advocacy for California’s Credit Unions and Nevada’s Credit Unions. “Last week, advocates had meetings during Hike The Hill in Washington, D.C. However, over the years, more than 30,000 messages have been sent to D.C. in opposition to the CCCA. We successfully kept the Credit Card Competition Act provision from even being introduced as an amendment in the House, and it will now be excluded from the Senate as well.”
In addition to the CCCA’s defeat, pro-credit union amendments gained traction. An amendment mirroring the Central Liquidity Facility (CLF) Enhancements Act, previously introduced by Sens. Alex Padilla (D-CA) and Kevin Cramer (R-ND), was deemed “non-controversial,” positioning for forward momentum should NDAA amendments be considered for a vote.
This bipartisan bill would make permanent the emergency liquidity enhancements temporarily enacted during the COVID-19 pandemic. These enhancements are important for small credit unions, which lost access to a liquidity backstop when temporary measures expired at the end of 2021.
The CLF enhancements would increase the facility’s maximum legal borrowing authority, permit temporary access for corporate credit unions, and provide greater flexibility for agent members to join. These provide much-needed flexibility and affordability to smaller credit unions that are at increased risk from economic uncertainty.
Another new amendment has been introduced in the Senate that would increase share insurance coverage for business accounts. The proposal aims to raise the insurance limit for non-interest-bearing business transaction accounts up to $20 million at institutions with less than $250 billion in assets.
A hearing has been held on this proposal, indicating it is receiving serious consideration. This amendment could provide a significant boost to small businesses relying on credit unions for financial services, further solidifying the industry’s role as a trusted partner for local business owners.
The California and Nevada leagues are also advocating for other amendments, including the access to capital for Community Development Financial Institutions (CDFIs).
“As members of Congress continue working through the NDAA, the leagues remain engaged, focusing on provisions that support credit union members,” Cuevas said.
The House passed its version of the NDAA last week. Should amendment discussions become too contentious, Senate leadership may choose to pursue an agreement with the House without an opportunity for amendment consideration.
The California and Nevada leagues remain engaged with Senate offices in the event dynamics shift. Should you have any questions, please email Stephanie Cuevas.
