WASHINGTON, D.C (February 5, 2025) |
The Defense Credit Union Council (DCUC) applauds Senators Elizabeth Warren (D-MA), Mazie Hirono (D-HI), Tim Kaine (D-VA), and Mark Kelly (D-AZ) for their leadership in addressing the financial challenges facing service members and their families, including the rising cost of military housing.
In today’s letter, DCUC shared how its member credit unions play a critical role in supporting military families by providing affordable financial services, financial education, and emergency assistance programs tailored to their unique needs.
“However, our ability to serve those who serve our country is increasingly at risk due to overregulation and ongoing threats to our tax-exempt status,” wrote Jason Stverak, DCUC Chief Advocacy Officer. “These challenges could reduce the financial options available to military families at a time when they need them the most.”
Stverak expanded on the consequences of revoking the current federal tax exemption of credit unions, stating it “would be devastating to military families who rely on the low-cost financial services that credit unions provide. Unlike banks, which prioritize shareholder profits, defense credit unions reinvest earnings into better loan rates, lower fees, and financial education programs that directly benefit service members.”
DCUC’s letter emphasized that if credit unions were taxed, the costs would ultimately be passed onto members, making it harder for military families to access the affordable financial services - especially in a time of increasing housing costs and inflationary pressures. “This would ultimately reduce the financial readiness of our troops and weaken the support network that helps them achieve economic stability,” DCUC’s letter warned.
Stverak also noted that DCUC has consistently advocated for the protection of VA Home Loan benefits and the need to address regulatory issues that may prevent veterans from accessing these benefits. Stverak referenced a letter DCUC sent to the House Financial Services Committee (HFSC), listing concerns regarding regulatory barriers that could hinder veteran’s access to affordable housing financing options.
“Furthermore, DCUC has commended Senate efforts to reform and improve the VA Home Loan Program, recognizing the importance of enhancing housing access and resources for our nation’s military and veteran communities,” added Stverak.
DCUC remains committed to working with Congress and the Department of Defense to ensure military families have the financial stability they deserve.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.