This morning, the Defense Credit Union Council (DCUC) sent two letters to Congress, sharing key priorities for defense credit unions and the communities they serve.
DCUC’s letter to Senate Finance called for the protection and preservation of the credit union tax status as the reconciliation bill moves forward. DCUC remains in close contact with Senate staff as leadership pushes to finalize the bill by July 4. DCUC strongly opposed any proposal to eliminate the tax exemption in the upcoming 2025 budget reconciliation package, warning that doing so would increase costs for working Americans; reduce financial services for underserved and military communities; undermine competition and local lending capacity; and yield minimal federal revenue in exchange for substantial economic harm.
DCUC also sent a letter to the House Financial Services Committee (HFSC) ahead of Federal Reserve Chair Jerome Powell’s testimony, outlining several key policy concerns:
- Interchange Fees (Regulation II): DCUC opposes further restrictions that would reduce income critical to funding member services and fraud prevention.
- FedNow Adoption: Support for widespread credit union access to instant payments, especially for military families.
- Liquidity Access: Calling for a reinstatement of corporate credit union access to the Central Liquidity Facility (CLF).
- CBDC Concerns: Strong opposition to a retail central bank digital currency due to risks of disintermediation, privacy violations, and cybersecurity threats.
- CRA Expansion: Opposition to extending the Community Reinvestment Act to credit unions.
- Cybersecurity: Advocating for increased resources and federal support for smaller credit unions to strengthen cyber defense.
- Veterans Lending: Full support for the Veterans Member Business Loan Act (VMBLA), allowing veteran-owned businesses improved access by raising the credit union lending cap.
- Transparency at the Fed: Encouraged for greater transparency and oversight without compromising the Federal Reserve’s independence.
“Credit unions, especially those serving our military community, are vital to financial readiness and inclusion,” says Jason Stverak, DCUC Chief Advocacy Officer. “Congress must preserve the tools and protections that allow credit unions to continue their mission.”
Additionally, DCUC sent a letter to the Acting Director of the CFPB Russell T. Vought in order to urge them to preserve financial literacy initiatives for servicemembers, veterans, and their families following the CFPB’s recent decision to curtail the use of civil penalty funds for consumer education. The DCUC is proposing a public-private partnership with the Bureau—leveraging the nationwide network of defense credit unions—to ensure continued access to the financial education our military community needs and deserves.
“The financial health of our nation’s military community is foundational to their overall well-being and national security. DCUC and the CFPB have a shared responsibility to protect and empower this population,” says Anthony R. Hernandez, DCUC President & CEO. “We believe this proposed partnership represents an opportunity to sustain and enhance financial literacy without additional federal expenditure, while reaffirming the Bureau’s commitment to servicemembers and veterans.”
DCUC continues to represent the unique voice of defense credit unions and their mission to serve servicemembers, veterans, and their families with safe, affordable financial services.