Advocacy Alert: Protecting Service Members and Their Families

The Impact of the NDAA Pay Raise

The Defense Credit Union Council (DCUC) continues its mission to advocate for and support the financial readiness of our nation’s service members and their families. With the passage of the recent National Defense Authorization Act (NDAA), junior enlisted service members are set to receive a significant 14.5% pay raise by April 2025. This increase in discretionary income will undoubtedly benefit service members and the communities surrounding military installations.

​However, we must remain vigilant. With greater financial flexibility comes greater risks of financial exploitation. Unscrupulous actors off base may see this as an opportunity to take advantage of young service members, enticing them to spend this new income on unnecessary or overpriced goods such as expensive electronics, cars, or high-interest financing schemes.

DCUC’s Role in Financial Readiness
Defense credit unions play a vital role in ensuring service members make sound financial decisions. Our advocacy extends beyond legislative efforts; it includes actively working with First Sergeants, military financial counselors, and base leadership to equip troops with the tools and education they need to build long-term financial stability.

This pay raise is a critical opportunity for service members to prioritize necessities like food, rent, and transportation, or to work toward financial goals such as paying down debt and building savings. DCUC is committed to promoting financial education initiatives and working with base personnel to guide troops toward responsible financial decisions.

Call to Action
We encourage all defense credit unions to take the following steps:

1. Engage First Sergeants and Financial Counselors: Offer resources and workshops on financial readiness to help service members manage their pay increase effectively.
2. Promote Responsible Spending: Share materials and host events emphasizing the importance of meeting basic needs and reducing debt before considering discretionary purchases.
3. Warn Against Predatory Practices: Collaborate with base leadership to alert service members to the risks of predatory lenders and exploitative sales tactics.

 Advocacy in Action 
DCUC is committed to advocating for policies and practices that protect our service members. By leveraging our unique position on military installations and our trusted relationship with service members, defense credit unions are uniquely positioned to provide the financial tools and advice needed to navigate this critical time. Let’s work together to ensure that this pay raise serves as a stepping stone toward greater financial security for our nation’s military families—not as an opportunity for exploitation.

For additional resources or support, please contact DCUC’s advocacy team. Together, we can help our service members build brighter financial futures.