WASHINGTON, D.C (July 22, 2025) |
The Defense Credit Union Council (DCUC) has expressed its support for H.R. 4551, the Employee Paycheck and Small Business Protection Act, in a letter to House Financial Services Committee Ranking Member Maxine Waters. This legislation addresses long-standing gaps in deposit insurance coverage for business accounts and ensures credit union parity during financial emergencies.
“We commend Representative Waters and committee members for their leadership in introducing this legislation,” says Jason Stverak, DCUC Chief Advocacy Officer. “H.R. 4551 offers timely, prudent reforms to modernize deposit insurance, protect small businesses and their employees, and strengthen confidence in community-based financial institutions.”
DCUC’s letter notated that for decades, small businesses have faced a dangerous gap in deposit insurance coverage. Under current law, business accounts are insured up to the same $250,000 limit as personal accounts—leaving companies with larger payroll or operating balances at risk in the event of institutional failure. H.R. 4551 directs regulators to raise that threshold for business transaction accounts and empowers both the FDIC and the National Credit Union Administration (NCUA) with enhanced tools to protect depositors during crises.
“This legislation closes a critical vulnerability that became painfully clear during the 2023 banking turmoil,” Stverak adds. “By enabling emergency coverage for business accounts and ensuring parity between banks and credit unions, the bill levels the playing field and protects working Americans whose paychecks depend on small business stability. We fully support this effort and are ready to assist in its implementation.”
DCUC’s letter highlighted the bill would not only protect business owners and their employees but also strengthen economic stability, reduce the risk of bank runs, and ensure that small businesses can confidently choose credit unions as their financial partners—without fear of unequal protections.
DCUC expressed its willingness to work closely with regulators during the rulemaking process and offer the insights of its member credit unions’ mission and impact to help shape practical, effective policy.
Stay up to speed with DCUC’s advocacy and representation at dcuc.org/news.