DCUC Calls for Inclusion of Credit Unions in Community Banking Reforms

WASHINGTON, D.C. – The Defense Credit Union Council (DCUC) has sent a letter to House Financial Services Committee Chairman French Hill, applauding his leadership on the "Make Community Banking Great Again" initiative and urging full inclusion of credit unions in community banking reforms.
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Defense credit unions, as not-for-profit cooperatives, are credit unions who serve as the vital financial pillars for military communities, providing America’s service members, veterans, and their families with access to affordable financial services. For over sixty years, DCUC has been the voice of these institutions, advocating for policies that strengthen their ability to serve their members. Through active engagement in regulatory, legislative, and DoD discussions, DCUC ensures the unique needs of defense credit unions remain a priority.

In the letter, DCUC highlighted key legislative priorities that could better support defense credit unions, including:

• Expanding Membership Access: Modernizing field-of-membership rules to allow credit unions to serve more Americans in underserved areas, addressing financial inclusion gaps, and ensuring military families have access to these services.
  
• Lifting Business Lending Caps: Removing the arbitrary 12.25% cap on credit union member business loans to enhance lending opportunities for veteran-owned small businesses, fostering job creation and economic growth.
  
• Supporting New Credit Unions: Reducing barriers to establishing new credit unions to increase competition and financial accessibility, especially in military communities.
  
• Enhancing Financial Readiness: Strengthening financial literacy programs for service members by supporting initiatives like the Financial Literacy Training Improvement Amendment to expand education and readiness efforts.
  
• Protecting Military Families During PCS Moves & Deployments: Advocating for updates to the Servicemembers Civil Relief Act (SCRA) to ease financial burdens during relocations and urging DoD to enhance reimbursement for moving expenses.
  
• Ensuring Tax Parity & Program Access: Preserving credit unions’ tax-exempt status and expanding access to federal lending programs to level the playing field with community banks.
  
• Modernizing Military Banking: Supporting legislation to update and improve DoD’s military banking programs, ensuring credit unions remain integral to financial services on bases.

Additionally, DCUC advocates for regulatory reforms to right-size oversight, modernize credit union governance, and enhance cybersecurity while opposing harmful interchange fee caps and rate restrictions that could limit credit access.

“DCUC stands ready to collaborate with Chairman Hill, Ranking Member Waters, and the Committee members to advance these important initiatives, ensuring all community financial institutions can continue providing vital financial services to military and veteran families, and expand this impact in currently underserved communities,” says Anthony Hernandez, DCUC President/CEO. “By enacting these commonsense reforms, Congress can strengthen the entire community banking ecosystem and enhance financial security for those who serve our nation.”

For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.