DCUC’s Commitment to CU Advocacy: Strengthening Credit Unions’ Support to Military & Veteran Communities

First and foremost, I want to thank each of you for your steadfast commitment to delivering the finest financial products and services to our Nation’s service members, veterans, and their families. Your dedication is why the Defense Credit Union Council (DCUC) takes great honor in representing you. Your unwavering focus to Serving Those Who Serve Our Country ensures the credit union philosophy of people helping people remains a distinctive force within the financial industry.

I also want to thank each of you for your continued support of DCUC. We do not take our responsibility to our members lightly. We are proud to come to work every day to grow and strengthen our value proposition to each member credit union we serve and represent. We recognize every credit union is an important part of the overall fabric of this great industry and carry great pride in supporting you. However, serving our nation’s military and veteran communities’ financial prosperity is at the center of why we do what we do.

DCUC completed another successful year in terms of increasing member value. In fact, over the last decade, DCUC has made steady progress in transforming from a niche trade association to the second largest industry advocate and the only one who can post actual results. For those questioning DCUC’s overall value, I offer the following advocacy initiatives initiated by DCUC for consideration:

First, we have proven to be the toughest industry advocate when defending the credit union tax exemption. As the Trump Administration’s “Tax Cuts and Job Act” reductions expire, Congress has signaled its willingness to re-examine the industry tax exemption as part of the discussion. Regardless of which party controls Congress, we are already facing an uphill battle. DCUC saw this coming and spearheaded the industry’s defense by tackling any potential threats and conversations on challenging this long-standing regulation. Unfortunately, we can no longer count on traditional allies within Congress after a series of missteps by a few from within our own industry.

Plus, if you have been following DoD’s Overseas Banking Program, then you know why it was important for DCUC to lead the industry in opposing changes to the Federal Credit Union Act (FCUA). If the statute were changed so a credit union could operate a community bank with share insurance, then by law, credit unions would be no different than “banks with a tax exemption.” So, if you value your credit union’s tax exemption, leading this fight is crucial for saving the industry as we know it. We’re still on the move and monitoring this issue closely.

Second, DCUC remains the only trade association to fully oppose expansion of the Community Reinvestment Act (CRA) to credit unions. News of alleged racial disparities in mortgage lending exposed the industry to lawsuits, increased regulatory oversight, and now, new Congressional action. In fact, Senator Elizabeth Warren (D-MA) and Congressman Emanuel Cleaver (D-MO) have drafted language that will impose CRA-like requirements on federal credit unions.

DCUC was the first to oppose this language since credit unions are not the culprits when it comes to redlining minority communities. While some in the industry celebrated the removal of CRA language in Section 205 of the proposed bill, DCUC highlighted troublesome CRA-like language overlooked in Section 204 of this same bill. Unfortunately, other industry advocates have promised not to oppose Section 204 which significantly changes the FCUA and imposes new reporting requirements, a public hearing process, and termination procedures.

Thus, it is a bit odd to see other industry advocates applauding the introduction of this bill while vowing not to oppose Section 204. Most credit unions are not even aware of Section 204. So, unless your credit union board is happy with the proposed statutory changes and additional reporting requirements, DCUC is your only advocate in opposing this bill.

Third, DCUC continues to lead the industry in preventing the Credit Card Competition Act (CCCA) from being inserted in the 2025 NDAA. Over the last year, DCUC added a strong voice in opposing this bill as it creates unnecessary risk to military operations. Military members operating in deployed and high operational, temporary training environments do not need to be distracted by compromises of their financial data. This is why DCUC opposes government price controls that will result in merchants routing financial transactions over cheap, unsecure networks. Our opposition has been a leading force when tackling the CCCA and unnecessary amendments to the NDAA for several years now.

DCUC was the first trade association to purchase digital ads in 2023, and as of just last month, our ads were geo-fenced and targeted in crucial Congressional districts so that the impact on military financial readiness was not lost during Congressional debates and committee votes. Credit card transaction income is vital for securing safe interchange routes while also protecting an important revenue stream to pay for credit union staff and overhead. If you are concerned about losing this income source, DCUC’s value is crucial for the entire industry.

Finally, DCUC remains focused on highlighting consumer protections and voicing regulatory concerns that safeguard credit unions’ ability to serve military personnel and veterans. DCUC is the industry’s expert in upholding the “one bank and one credit union” policy which has preserved each credit union’s historical role on military installations. As a result, DCUC saves each member credit union between $100,000 and $250,000 each year as we safeguard our industry’s statutory no-cost land lease privileges. Dollar for dollar, there is no better value for the dues and support DCUC provides to each of our members. We’re very proud to see the true impact this Council offers to our member credit unions and the communities you serve.

And we have plans to do much more! Since we last restructured our dues over 26 years ago, DCUC and its footprint have grown immensely within this evolving industry. We have seen the need for our advocacy, member communications, and educational conferences increase significantly. Because of this, DCUC must remain agile and well-positioned to ensure our representation of you continues to remain strong, supportive, and impactful.

With the guidance and support of DCUC’s Board of Directors and following its approval by DCUC Member Voting Delegates during our 2024 Annual Business Meeting, DCUC has restructured its dues formula, effective January 1, 2025. Our new dues formula reflects DCUC’s improved member value and will allow the Council to grow in ways that best serve you. Our vision for growth will include:

• Increasing and enhancing our communications with each of our members
  
• Building better ties with our fellow trades, credit union leagues, and other credit union service organizations
  
• Seeking increased access at all DoD facilities and more Senior Leader engagements to ensure your concerns are heard and stop regulatory violations before they happen
  
• Doubling down on financial education and projects that showcase your commitment to our military, veterans, and their families
  
• Ramping up our advocacy efforts and footprint, including the formation of two new committees, the Defending Credit Unions Political Action Committee (DCU PAC) and DCUC National Advocacy Fund (NAF). Their goal will be to amplify the credit union movement in legislative and regulatory matters, ensuring all interests and concerns are heard and protected
  
• The DCU PAC will elevate DCUC’s advocacy efforts and cultivate a stronger political presence and engagement of DCUC and its member credit unions
  
• DCUC’s NAF will support DCUC’s increased advocacy efforts and PAC goals, championing credit union principles and top priorities

DCUC is proud to be the only credit union association focused on military and defense concerns. Your continued support through the renewal of your membership will allow us to further serve and meet your needs in the coming year!

And if you’re not already a member, DCUC is open to all credit unions, big or small, interested in better connecting with and serving their military and veteran communities! We’d be happy to share more about how we can advance your credit unions’ abilities, especially when serving those who serve our country!

On behalf of DCUC and our Board of Directors, thank you for your trust, support, and dedication! We are committed to you and your members’ success!