The Defense Credit Union Council (DCUC) is taking the fight to Capitol Hill with a dual mission: make sure Coast Guard members never miss a paycheck during government shutdowns, and stop proposed cuts to a critical fund that helps military families access affordable financial services.
Think of it as financial advocacy with a purpose—because when the government can’t get its budget act together, military families shouldn’t be the ones left scrambling to pay rent.
Coast Guard Members Deserve Better Than IOU Paychecks
In a letter submitted to the House Committee on Homeland Security, DCUC made the case for permanent pay protections for Coast Guard personnel during budget standoffs. Unlike their counterparts in other military branches, Coast Guard members can find themselves working without pay when the Department of Homeland Security runs out of funding.
“Coast Guard members and their families deserve the same financial certainty that supports readiness across the military community,” explains Anthony Hernandez, DCUC President and CEO (and retired Air Force Colonel). “When servicemembers are asked to continue their mission during funding disruptions, they should not also have to worry about meeting basic household expenses.”
Jason Stverak, DCUC’s Chief Advocacy Officer, spelled out just how real these disruptions become for families. His testimony detailed how defense credit unions across the country jumped into action during recent funding gaps, offering emergency loans with zero interest, payment relief, financial counseling, and other lifelines to help families keep the lights on and food on the table.
“These were not abstract budget events; they imposed real hardship on Coast Guard families and the broader DHS workforce,” Stverak wrote. His team even published a national roundup of relief efforts back in October 2025, documenting how credit unions became “practical lifelines for families trying to buy groceries, keep current on bills, and avoid long-term credit damage.”
The message to Congress? Fix this permanently. Coast Guard families already face plenty of pressure from housing costs, childcare challenges, and workforce shortages. Missing paychecks while still reporting for duty shouldn’t be added to that list.
Proposed CDFI Cuts Would Hit Military Communities Hard
Meanwhile, DCUC fired off another letter—this time to the Senate Finance Committee—urging lawmakers to reject massive proposed cuts to the Community Development Financial Institutions Fund. The CDFI Fund helps mission-driven credit unions provide affordable financial services in underserved communities, including areas around military installations.
The numbers are stark. The Administration’s budget proposal would slash CDFI funding from $324 million down to $119.5 million—a gut-punch reduction of 63.1%. Even worse, the plan would eliminate several key programs entirely, including the CDFI Program, Native American CDFI Assistance Program, Small Dollar Loan Program, and others.
“CDFI credit unions are often the institutions stepping in where traditional financial services have stepped away,” Stverak points out. They’re providing affordable credit, supporting veteran-owned businesses, and making community investments that actually strengthen local economies—exactly the kind of work that keeps military families financially stable.
Cut that funding, and military families may find themselves pushed toward payday lenders and other predatory alternatives. Not exactly a recipe for military readiness.
It’s Not Just About Money—It’s About Making the Program Work
DCUC didn’t stop at asking Congress to restore funding. They also called for better oversight of how Treasury manages the CDFI Fund, pointing to award-processing delays and administrative bottlenecks that slow down help when communities need it most.
“Funding alone is not enough,” Hernandez emphasizes. “Treasury must also ensure that CDFI resources reach communities efficiently and predictably. Delayed awards, administrative bottlenecks, and unnecessary compliance burdens can undermine the very purpose of the program.”
The council’s specific asks include:
- Keep CDFI funding at the current $324 million level and maintain all existing programs
- Make Treasury provide quarterly reports on application volumes, award timelines, and how quickly money actually gets disbursed
- Streamline paperwork and expand technical assistance for smaller CDFI credit unions
- Require reporting on how CDFI resources specifically benefit servicemembers, veterans, and military communities
Translation: show your work, speed up the process, and prove the money is reaching the people who need it.
Why This Matters
At its core, DCUC’s advocacy connects two dots that Washington sometimes misses: financial stability and military readiness go hand-in-hand. When Coast Guard members are worried about making mortgage payments during a government shutdown, that’s a readiness problem. When military families can’t access affordable financial services because CDFI programs got axed, that’s a readiness problem too.
Defense credit unions have proven they’ll show up during crises—offering emergency loans, waiving fees, and providing counseling when government dysfunction leaves families in the lurch. But as DCUC makes clear, band-aid solutions aren’t enough. The goal is preventing the financial wounds in the first place.
Now it’s up to Congress to decide whether they agree.