WASHINGTON, DC (November 17, 2025) |
Today, the Defense Credit Union Council, DCUC, sent a letter to House Financial Services Committee leaders ahead of tomorrow’s hearing on deposit insurance, expressing concern that no credit union representative was included on the witness panel.
“Credit unions serve nearly half of all Americans, and their perspective is essential to any discussion of deposit insurance reform alongside other financial institutions,” says Jason Stverak, DCUC Chief Advocacy Officer.
DCUC submitted for the record the written testimony of Hanscom FCU President/CEO Peter Rice. Rice recently testified before the Senate Banking Committee on the same matter that the House Financial Services Committee plans to hear on Tuesday. The testimony highlights how unequal protections for the largest banks can disadvantage credit unions as community institutions, restrict small-business credit, and harm the defense supply chain.
In its letter, DCUC urged the Committee to consider key credit union priorities as it evaluates deposit insurance reform, including:
- Raising coverage for small-business operating accounts, which frequently exceed the current $250,000 insured limit and were a major source of instability during recent bank failures.
- Ensuring full parity between credit unions and banks in both standard insurance coverage and emergency guarantee programs so that credit union members are not treated as “second-class” depositors during crises.
- Phasing in any coverage increases responsibly to protect the National Credit Union Share Insurance Fund (NCUSIF) and avoid sudden premium spikes for community institutions.
- Removing outdated limits on credit union small-business lending, including supporting the Veterans Member Business Loan Act (VMBLA) to expand access to credit for veteran-owned businesses.
“Deposit insurance reform and improved small-business lending authority go hand-in-hand, protecting deposits while expanding access to affordable credit,” reminds Stverak.
DCUC requested that the Committee include credit union input as it develops deposit insurance solutions and reaffirmed its readiness to serve as a resource throughout the process.