The Defense Credit Union Council (DCUC) sent a series of letters to key Senate committees ahead of pivotal hearings on national defense funding and digital asset regulation.
DCUC’s letters urged Congress to take action on two critical issues affecting military families and underserved communities: preserving funding for the Community Development Financial Institutions (CDFI) Fund and ensuring responsible innovation in digital asset markets. In addition to these letters, DCUC also sent a letter to the Senate Armed Services Committee ahead of its NDAA markup hearing.
In a letter to the Senate Appropriations Subcommittee on Financial Services and General Government, DCUC advocated for the full restoration of Fiscal Year 2026 funding for the CDFI Fund, its irreplaceable role in promoting financial stability among servicemembers and distressed communities.
Key points from the letter included:
- Nearly 500 CDFI-certified credit unions serve over 19 million Americans, many located near military installations. These institutions offer affordable small-dollar loans, financial education, and emergency relief in areas often neglected by traditional banks.
- Military Readiness Through Financial Readiness: The CDFI Fund supports servicemembers’ financial stability, directly enhancing military readiness. Grants have enabled defense credit unions to open branches in banking deserts and provide alternatives to predatory lenders.
- Proven Return on Investment: In FY 2024 alone, CDFIs delivered $24 billion in financing, supporting 109,000 small businesses and 45,000 affordable housing units. For every federal dollar invested, $8–$12 in private capital is generated.
DCUC recommended restoring funding to, at least, the FY 2025 enacted level of $324 million, warning that defunding the program would reverse decades of progress and undermine military financial resilience.
Digital Asset Markets: A Call for Clear, Fair, and Safe Regulation
DCUC also sent a letter to the Senate Banking Committee ahead of tomorrow’s hearing, “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.” DCUC recommended:
- Congress establish consistent rules for digital assets to allow credit unions to safely and responsibly offer these services.
- regulatory parity; credit unions must be able to compete on equal footing with banks. DCUC supports granting the National Credit Union Administration (NCUA) oversight of digital asset activities within credit unions
- federal supervision of stablecoin issuers, including non-bank entities, to ensure sound risk management and AML compliance.
- as digital markets expand, strong anti-fraud measures and education are critical to protect consumers and ensure financial security.
“These two issues—preserving CDFI Fund support and establishing smart digital asset regulation—are essential to building an inclusive, stable financial system that meets the needs of our nation’s military families,” said Jason Stverak, DCUC Chief Advocacy Officer. “We urge Congress to act swiftly and thoughtfully.”