DCUC Urges Inclusion of Credit Unions in Community Banking Legislation

WASHINGTON, DC – The Defense Credit Union Council (DCUC) expresses strong support for efforts to strengthen community financial institutions, while urging policymakers to explicitly include credit unions in legislative proposals aimed at supporting locally focused lenders.

DCUC commended House Financial Services Committee Chairman French Hill for his focus on policies that promote access to capital for families, small businesses, and local economies, noting that a healthy community finance ecosystem depends on both community banks and credit unions. 
 
“We support the goal of strengthening community financial institutions and appreciate Chairman Hill’s focus on policies that help locally focused lenders serve families, small businesses, and local economies. Community finance is essential to Main Street, and that ecosystem includes both banks and credit unions,” says Anthony Hernandez, DCUC President/CEO. “However, credit unions must be included and supported, not excluded again.” 
 
DCUC Chief Advocacy Officer Jason Stverak adds, “Credit unions serve more than 144 million Americans through a not-for-profit, member-owned model that exists solely to serve people and communities. That mission was on full display during recent federal government shutdowns. When paychecks stopped, credit unions across the country stepped in immediately with emergency and zero-interest loans, fee waivers, payment deferrals, and one-on-one financial counseling for federal employees, service members, veterans, and their families. In many cases, credit unions were the first, and sometimes the only, financial institutions providing relief.”  
 
Stverak continued, stating, “That real-world performance is exactly why credit unions must be part of any serious effort to strengthen community financial institutions. If policymakers want resilient local finance, consumer stability during disruptions, and institutions that act as financial first responders in times of crisis, credit unions are not optional; they are essential. Supporting community finance means recognizing and supporting credit unions by design, not by omission.” 
 
DCUC has consistently advocated for the inclusion of credit unions in community banking reforms, including prior initiatives led by Chairman Hill and Representative Andy Barr. In previous correspondence, DCUC highlighted the growing challenge of banking deserts and cited Federal Deposit Insurance Corporation (FDIC) data showing that nearly 4.5% of U.S. households remain unbanked, with rural and low-income communities disproportionately affected. 
 
“Credit unions often serve areas and populations that other institutions do not, rural communities, underserved urban neighborhoods, and military families,” said DCUC. “If Congress wants a more inclusive and resilient financial system, legislation must be designed to grow both community banks and credit unions side by side.” 
 
DCUC urges lawmakers to ensure that new proposals such as the Main Street Capital Access Act, which focuses on bank formation, supervision, funding, competition, and innovation, recognize the essential role credit unions play in preserving access to financial services and supporting local economies. 
 
“Supporting community finance means recognizing credit unions by design, not by omission,” Hernandez concluded. “Now is the time to enact policies that strengthen the entire community finance ecosystem and ensure every American has access to safe, affordable financial services.” ​