WASHINGTON, D.C (July 7, 2025) |
The Defense Credit Union Council (DCUC) has sent a letter to the Senate Armed Services Subcommittee on Personnel outlining our top legislative priorities for inclusion in the Fiscal Year 2025 National Defense Authorization Act (NDAA).
These priorities reflect over sixty years of DCUC’s expertise in representing and championing its member credit unions’ service to more than 300 military installations and surrounding communities worldwide.
“As the Senate finalizes the FY2025 NDAA, DCUC stands ready to collaborate on policies that not only strengthen military families’ financial security but also protect mission-critical credit union services and ensure servicemembers have the resources they need to thrive both during and after military service,” said Anthony Hernandez, DCUC President/CEO.
“Our proposals are rooted in practical experience, designed to reinforce military financial resilience, and ensure credit unions can continue to serve our armed forces effectively,” says Jason Stverak, DCUC Chief Advocacy Officer.
DCUC’s key policy recommendations called for:
Preservation of the Credit Union Tax-Exempt Status: DCUC requests Congress protect credit unions’ longstanding tax status which enables credit unions to reinvest over $22 billion annually in direct member benefits—especially critical for military families who rely on low-cost loans, fee waivers, and tailored financial services.
Opposing the Hawley-Sanders Interest Rate Cap: A proposed 10% interest cap would severely limit access to affordable credit for servicemembers. DCUC shared how credit unions already operate under an 18% cap, balancing member protection with access to emergency credit. This bill risks pushing military borrowers toward predatory lenders.
Rejecting the Credit Card Competition Act (CCCA): DCUC has stressed how the CCCA would gut fraud protections, eliminate rewards programs, and impose crushing costs on small credit unions. It threatens on-base financial education, scholarship funding, and
readiness initiatives funded by interchange revenue. DCUC remains firm in its opposition to this harmful legislation and reiterates that the proposed amendment has no place in the NDAA.
Supporting the Veterans Member Business Loan Act (VMBLA): The VMBLA would exempt loans to veteran-owned businesses from the arbitrary 12.25% member business lending cap. The legislation would unlock critical capital for veteran entrepreneurs without compromising safety and soundness.
Including the Military Financial Services Protection Act: This legislation would establish a formal DoD Advisory Committee to modernize military banking access and ensure credit unions have a seat at the table. It would also elevate the voices of on-base institutions to reflect real-world needs.
Safeguarding On-Base Access to Financial Services: DCUC called for streamlined overseas branch approvals and simplified base leasing processes. Consistent on-base access is essential to financial and mission readiness.
Addressing Overseas Loan Defaults and Asset Recovery: Credit unions face legal and logistical obstacles when recovering collateral from overseas defaults. DCUC urges Congress to support DoD in developing cooperative protocols to reduce losses and maintain lending confidence for deployed personnel.
Supporting the VA Home Loan Awareness Act: One-third of eligible veterans are unaware of the VA home loan benefit. DCUC supports this bipartisan bill requiring clear disclosure of VA eligibility in mortgage applications to expand veteran homeownership.
Allowing Public Deposit Acceptance by On-Base Credit Unions: Authorizing federally and state-chartered credit unions on military installations to accept public deposits would enhance financial support for base operations and expand lending capacity within military communities.
Opposing NCUSIF Coverage for Non-Member Deposits: Expanding federal share insurance to non-members undermines the credit union mission and threatens the integrity of the NCUSIF. DCUC urges Congress to preserve member-only coverage to ensure financial stability and equitable treatment across the industry.
Enhancing Financial Literacy Training with On-Base Partners: DCUC commends Senator Patty Murray’s leadership and calls for stronger collaboration between DoD and on-base credit unions in delivering financial education. Credit unions are uniquely positioned to provide trusted, personalized guidance that supports long-term financial readiness.
Read more about DCUC’s advocacy on the NDAA here.