WASHINGTON, DC (July 20, 2026) |
Today, the Defense Credit Union Council (DCUC) submitted official comments to the House Appropriations Committee ahead of its hearing, "Funding Lapses: Analyzing Shutdown Reform," urging Congress to enact bipartisan reforms that protect servicemembers, Coast Guard personnel, veterans, federal employees, and military families from the financial consequences of future government shutdowns.
"Government shutdowns are far more than political disagreements, they create real hardship for the men and women defending our nation," says Jason Stverak, DCUC Chief Advocacy Officer. "Defense credit unions have proudly stepped forward every time Congress has failed to complete its work, but military families should never have to rely on emergency financial assistance simply because Washington cannot pass appropriations. Financial readiness is military readiness."
Drawing on the experiences of previous funding lapses, DCUC highlighted the critical role credit unions have played in supporting military communities through emergency payroll advances, low- and no-interest bridge loans, payment deferrals, fee waivers, financial counseling, and other relief programs that helped families remain financially stable during periods of uncertainty.
To strengthen future preparedness, DCUC urged Congress to:
- Enact appropriations bills on time to avoid funding disruptions.
- Permanently guarantee uninterrupted pay for all uniformed servicemembers, including the U.S. Coast Guard, during any government shutdown.
- Improve coordination between federal agencies and financial institutions serving military communities.
- Expand financial readiness initiatives that strengthen emergency savings and financial resilience.
- Recognize defense credit unions as essential partners in protecting military communities during national emergencies.
DCUC also encouraged Congress to examine long-term appropriations reforms that reduce uncertainty, strengthen military readiness, and prevent avoidable financial hardships for those serving the nation.
"Defense credit unions will always answer the call to support military families, but they should not be expected to serve as a substitute for sound federal budgeting," says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. "Congress has an opportunity to provide lasting certainty for those who defend our nation by ensuring servicemembers never again become collateral damage in funding negotiations. We stand ready to work with lawmakers on bipartisan solutions that strengthen both financial readiness and national security."
As part of its submission, DCUC also provided suggested questions for hearing witnesses addressing military readiness, Coast Guard pay protections, financial readiness, agency coordination, and long-term appropriations reform.
DCUC remains committed to working with Congress to advance policies that protect military communities while preserving access to safe, affordable financial services for those who serve.
Please see below DCUC’s suggested questions for hearing witnesses:
- Previous government shutdowns demonstrated that military families often rely on defense credit unions for emergency financial assistance. What specific reforms would ensure that servicemembers and federal employees never again have to depend upon emergency lending because Congress failed to enact appropriations?
- What lessons has Congress learned from previous shutdowns regarding their impact on military readiness, recruitment, retention, and morale?
- Should Congress permanently guarantee uninterrupted pay for every uniformed service, including the United States Coast Guard, during future funding lapses? If not, why? 4. During previous shutdowns, financial institutions serving military communities created payroll advance programs, emergency loans, payment deferrals, and fee waivers. Should Congress view these institutions as partners when developing future contingency plans? 5. What additional authorities or coordination mechanisms would allow agencies to better communicate with financial institutions before a shutdown occurs?
- How do continuing resolutions and repeated funding uncertainty affect long-term planning at the Department of Defense and the Department of Homeland Security?
- What measurable impacts have shutdowns had on junior enlisted servicemembers, military spouses employed by the federal government, and veterans working in civilian federal positions?
- Should Congress consider automatic continuing appropriations for military compensation and critical national security functions when regular appropriations are not completed? 9. What role should financial readiness play in national security planning?
- How can Congress better recognize and leverage the work of community financial institutions including defense credit unions that consistently provide stability during national funding disruptions?
Military Readiness
- Please provide any data demonstrating the impact government shutdowns have had on military readiness, retention, recruiting, or morale.
- Has your agency measured financial stress among servicemembers during previous shutdowns?
Coast Guard
- What legislative changes would permanently prevent future interruptions in Coast Guard pay? 2. Should Coast Guard compensation receive the same automatic protections afforded to other military branches?
Military Families
- Has your agency evaluated how missed federal paychecks affect military housing stability, childcare, healthcare access, and financial readiness?
- What additional support should Congress consider for military spouses affected by furloughs? Financial Institutions
- Did your agency coordinate with defense credit unions during previous shutdowns? 2. Would formal coordination with defense credit unions improve contingency planning? Appropriations Reform
- What reforms would most effectively reduce uncertainty surrounding continuing resolutions and shutdowns?
- Should Congress establish automatic funding mechanisms for national security operations?