Advocacy in Action: Guarding Our Mission - Fall 2025 Legislative Outlook for Defense Credit Unions

​As Congress returns to session in fall 2025, the defense credit union community can take pride in recent advocacy wins and prepare for the challenges ahead. The Defense Credit Union Council’s proactive, bipartisan efforts have protected servicemembers’ financial interests and ensured credit unions have a voice at the policy table. At the same time, DCUC remains clear-eyed about the work to be done. The late-2025 legislative landscape presents both opportunities and threats—from safeguarding military financial protections to positioning credit unions for future innovation. In this outlook, we recap the recent victories and map out the key policy priorities on the horizon as Congress gets back to work.

Recent Legislative Victories
DCUC’s advocacy in recent months has paid off in tangible ways. Two major victories this summer protected credit union interests and the financial well-being of those who serve our nation:

Blocking Harmful Interchange Provisions in the Defense Bill
Perhaps the biggest win was defeating an attempt to attach the Credit Card Competition Act—a measure effectively capping credit card interchange fees—to the must-pass FY 2026 National Defense Authorization Act (NDAA). Retail lobbyists had pushed this amendment, which would have forced card transactions onto new networks and slashed interchange revenue. DCUC sprang into action alongside other credit union and banking associations to oppose it, warning that a similar debit card cap in 2010 failed to benefit consumers (most merchants kept the savings) while prompting credit unions to cut back free checking and rewards. Credit unions feared a repeat: reduced card rewards, new fees, and less investment in fraud prevention—all harming members. For defense credit unions, interchange income funds many special programs for military families (like low-interest emergency loans and deployment relief), so the stakes were especially high.

Thanks to our efforts advocacy, Congress heeded these concerns. The House passed the NDAA without any interchange cap amendments, rejecting what DCUC called a “dangerous legislative shortcut” that would have made servicemembers and their families “collateral damage in a corporate lobbying fight.” Lawmakers preserved the current electronic payments system that delivers value to consumers and helps fund credit union member benefits, rather than granting big-box retailers a windfall at members’ expense. This defensive victory protects the rewards, fraud protections, and affordable services that military members enjoy through their credit union cards. While the interchange battle may resurface in other bills, for now credit unions have proven that by speaking up together, we can stop misguided policies in their tracks. DCUC will remain vigilant against any renewed efforts, continuing to remind lawmakers that the current interchange system works for consumers and that unwarranted changes would mainly enrich large retailers while hurting everyday Americans.

Ensuring a Credit Union Voice on Deposit Insurance Reform
Another landmark success came when a defense credit union leader was invited to testify before the U.S. Senate—ensuring our movement’s voice was heard on a critical issue. Earlier this month, Peter Rice, President/CEO of Hanscom Federal Credit Union, testified in a Senate Banking Committee hearing on deposit insurance reform. DCUC worked behind the scenes to secure a credit union witness (knowing banks would be at the table) so that policymakers would hear our perspective directly. The result was a powerful moment: a defense credit union CEO speaking up for all credit unions and our members.

“This is bigger than banking. This is about paychecks, communities, and the strength of our nation. Our fellow Americans are counting on us,” Peter Rice told Senators in his opening remarks, underscoring what’s at stake when local financial institutions falter. He warned that when a bank’s risky behavior endangers payrolls, “Main Street doesn’t eat”—no American worker should find their paycheck suddenly hostage to a bank failure. His testimony resonated on Capitol Hill. Lawmakers on both sides took notice: Senate Banking Committee Chairman Tim Scott praised the unique community-based viewpoint Peter brought, and Senator Elizabeth Warren (who extended the invitation for a credit union representative) underscored the importance of including credit unions in these discussions. DCUC’s CEO Anthony Hernandez noted that moments like this fulfill the Council’s mission “to ensure that credit unions are part of key discussions” on financial stability.

Having a credit union leader at the hearing paid immediate dividends. Peter Rice advocated strongly for modernizing deposit insurance in light of recent bank failures—including raising coverage limits for business accounts (so that, for example, military base contractors or small businesses won’t lose their entire payroll if a bank fails) and giving the NCUA the same crisis-management tools as the FDIC to protect deposits. He argued that we must protect Main Street from becoming collateral damage when big banks take outsized risks. This message hit home: if we want resilient communities and a strong defense industrial base, we need local institutions like credit unions to keep funds safe and local economies running, even in a storm. By hearing’s end, there was broad recognition that credit unions are pillars of Main Street, and that our ideas to strengthen deposit insurance merit serious consideration.

Securing this testimony was a major advocacy win for DCUC. It signaled that Congress values credit unions’ input and that DCUC can elevate our members’ concerns to the highest levels of policymaking. Just as importantly, it laid the groundwork for potential policy changes—such as higher insured limits for business deposits and relief from restrictive member business lending caps—that DCUC will continue to champion going forward.

In short, we proved that credit unions will not sit on the sidelines; we have a seat at the table and are contributing solutions. (Looking ahead, DCUC will keep pressing lawmakers to enact these deposit insurance reforms so that credit union members’ funds are better protected.)

Fall 2025 Legislative Landscape: Key Challenges and Priorities Ahead
With those victories in hand, DCUC now turns to the road ahead. The autumn legislative session will be busy, and many agenda items could affect defense credit unions either directly or indirectly.

I invite you to take a look at our Fall 2025 Legislative & Regulatory Update for a broader summary of the key issues DCUC is navigating in the coming months, and how we are positioning our advocacy for success.