WASHINGTON, D.C. (February 10, 2025) |
The Defense Credit Union Council (DCUC) sent a letter to the Senate Banking, Housing, and Urban Affairs Committee ahead of its hearing on “The Semiannual Monetary Policy Report to Congress,” highlighting key challenges facing defense credit unions and proposing solutions to sustain their mission.
In the letter, DCUC Chief Advocacy Officer Jason Stverak warns that excessive regulation threatens credit unions' ability to serve members effectively by increasing costs, stifling innovation, and reducing competitiveness. DCUC’s letter calls for a balanced regulatory approach that recognizes credit unions' not-for-profit mission and prevents undue burdens that could harm members’ financial well-being.
DCUC shared how maintaining the tax-exempt status of credit unions is crucial to their ability to provide affordable financial services, particularly for military families and veterans. DCUC also opposes the expansion of the Community Reinvestment Act (CRA) to credit unions, stressing that credit unions actively reinvest in their communities, and that additional regulatory requirements would divert resources away from member services.
DCUC’s letter also raised concerns over proposed interchange legislation, warning that changes to the current system could increase costs and limit servicemembers’ access to affordable credit. Additionally, Stverak noted how proposed caps on credit card interest rates could inadvertently reduce credit availability for underserved communities, forcing credit unions to tighten lending criteria. DCUC urges the Committee to consider alternative consumer protections without restricting access to credit.
Preserving the independence of the National Credit Union Administration (NCUA) is an ongoing priority for DCUC. DCUC’s letter stressed the importance of strengthening cybersecurity measures, calling for grants or low-interest loans to help defense credit unions protect sensitive member data from cyber threats.
To enhance financial readiness among military personnel, DCUC also encouraged increased federal support for financial education initiatives, particularly those tailored to the unique
challenges of servicemembers and veterans. DCUC called on Congress to pass the bipartisan Veterans Member Business Loan Act (VMBLA), which would exempt loans to veteran-owned businesses from existing lending caps, expanding credit unions’ ability to support veteran entrepreneurs.
As the Senate Banking Committee reviews the Federal Reserve’s monetary policy report, DCUC calls on the committee leaders to address these policy concerns to ensure credit unions remain strong, independent, and equipped to meet the evolving needs of their members.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.