DCUC Sends Letter to Senate Armed Services Committee Ahead of Secretary of Defense Confirmation

DCUC Strongly Supports Need for DoD Federal Advisory Committee

​WASHINGTON, D.C. – Today, the Defense Credit Union Council (DCUC) sent a letter to the Honorable Roger Wicker (R-MS), Chairman, and the Honorable Jack Reed (D-RI), Ranking Member, Senate Armed Services Committee raising concerns over the critical issues related to the Department of Defense’s (DoD) Military Banking Programs, Policies, and Regulations.

DCUC Chief Advocacy Officer Jason Stverak called attention to these issues as the Committee evaluates the nomination of Mr. Pete Hegseth for Secretary of Defense.

Stverak noted DCUC’s strong support of the Military Financial Services Protection Act, which seeks to enhance the DoD’s understanding and management of military banking services. The Act addresses challenges stemming from the DoD’s limited familiarity with modern banking practices and technologies—challenges that have resulted in controversies like the awarding of the Overseas Military Banking Program (OMBP) contract.

Stverak shared how the proposed legislation would establish an advisory committee comprising senior DoD officials, federal financial regulators, and representatives from organizations such as DCUC and the Association of Military Banks of America (AMBA). The committee would make recommendations to modernize the Military Banking Program, leveraging financial industry innovations to better serve military personnel and their families.

DCUC’s letter outlined how the legislation would enhance financial readiness, ensure regulatory compliance, and strengthen military-credit union relationships. DCUC also called for the Committee to address the following critical issues during the upcoming confirmation process:

• Adherence to the “One Bank, One Credit Union” Policy;
  
• Stakeholder engagement, such as involving organizations like DCUC and AMBA toensure informed decision-making and effective implementation of banking programs;
  
• Financial readiness training, referencing DoD’s spending of limited operational funds onfinancial readiness training while restricting banks and credit unions from offeringsuperior resources at no cost as part of their on-base agreements;
  
• Opposition to unrelated amendments in the NDAA, and what measures will be taken toprevent amendments, such as the Durbin-Marshall Credit Card Competition Act (CCCA),from undermining credit union operations or increasing financial risks for servicemembers;
  
• Advocacy for a Clean NDAA: How the committee will support the passage of a National Defense Authorization Act (NDAA) free from unrelated provisions that threaten the financial stability of military members and veterans;
  
• Ensuring Financial Security for Military Communities

“DCUC has long been a champion for reforms in DoD banking programs, striving to enhance financial services for service members and their families,” said Stverak. “Addressing these issues during Mr. Hegseth’s confirmation is essential to safeguarding the financial interests of our military communities and maintaining the integrity of military banking services. We trust the Committee will give these critical matters the attention they deserve.”

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