As the Senate reconvened this week, the Defense Credit Union Council (DCUC) led a strategic gathering of credit union leaders and advocates to align messaging and sharpen tactics to continue defending the credit union tax exemption to ensure smart data privacy.
At the heart of the discussion was the budget Reconciliation Bill, which now lies in the hands of the Senate. DCUC President/CEO Anthony Hernandez emphasized, “We are not out of the woods yet. It’s critical that our industry presents a unified voice and consistent messaging during this pivotal time.”
Although the House version of the bill preserves credit unions’ tax-exempt status, concerns remain that the Senate may look to eliminate it as a funding offset. “Credit unions are just a drop in the bucket at $3.1 billion,” DCUC Advocacy Consultant John McKechnie said. “But if the Senate starts looking at all the drops, this argument may lose weight.”
Key Takeaways from the Strategy Session
- Real-time insights on the Reconciliation Bill’s progression and potential threats to the credit union tax exemption.
- Coordinated messaging tools and templates to help credit unions activate grassroots support and engage policymakers.
- A shared commitment to counter misinformation and elevate the credit union difference in national conversations.
Legislative Flashpoints
In addition to the tax status debate, DCUC and its partners are preparing for battles on multiple fronts.
DCUC is advocating for a fair, tailored Digital Assets & the CLARITY Act that allows credit unions to participate in the evolving digital asset marketplace. Their recent letter to Congress calls for recognition of the NCUA as the primary regulator, clarity around BSA/AML compliance, and regulatory tiering for smaller institutions.
Ahead of a House Small Business Committee hearing, DCUC urged lawmakers to pass the Veterans Member Business Loan Act (VMBLA) and modernize the SBA 7(a) program. Veteran-owned businesses generate nearly $1 trillion annually yet face disproportionate credit challenges, which credit unions are ready to help solve if the arbitrary 12.25% member business lending cap is removed.
With the Credit Card Competition Act (CCCA) and other potentially harmful amendments looming, DCUC is providing talking points and meeting prep for partners to ensure that the National Defense Authorization Act (NDAA) does not undermine the financial readiness of servicemembers and their families.
DCUC submitted testimony urging Congress to pass data privacy legislation that protects consumers without disrupting existing, strong credit union safeguards under current laws like The Graham Leach Bliley Act (GLBA). They warned that duplicative compliance burdens and private rights of action could backfire, reducing services for military families.
Proactive PR and National Storytelling
With an uptick in banker-driven attacks, DCUC is coordinating a national PR campaign highlighting the credit union difference. The plan includes op-eds, regional success stories and multi-channel messaging designed to elevate voices from the field, including veteran borrowers, first-time homebuyers and small business owners.
To build on the momentum, DCUC plans to deliver a joint industry letter to the Senate this week, distribute customizable templates for credit unions to contact lawmakers and rally members, continue regional media coordination with credit unions like Members 1st and Hanscom FCU, and push to bring constituent impact stories directly to lawmakers.
“Unity and urgency must be our guideposts,” Hernandez said. “Now is not the time for anyone to take a victory lap. This is just the start of the next campaign.”