View From the Board: DCUC: A Legacy of Advocacy and Leadership

Provided by Jack Fallis, DCUC Board 1st Vice Chair & Global CU President, PNW & International Markets

Since its founding, DCUC has been the trusted voice for credit unions serving military and veteran communities. With a legacy rooted in advocacy and collaboration, DCUC continues to empower credit unions to provide tailored financial services for those who have dedicated themselves to defending our nation. In 2024, DCUC upheld its mission with notable successes in advancing policies that protect and champion credit unions and their members.

2024 Advocacy Successes

Protecting Credit Union Tax Status
DCUC fiercely and proactively defended the credit union industry’s tax-exempt status—an essential pillar that empowers credit unions to serve their members, especially in military and underserved communities. When for-profit banking opponents such as the ICBA launched relentless attacks, DCUC promptly countered their criticisms. DCUC’s team addressed a barrage of negative press against the industry questioning whether credit unions have strayed from their founding principles as member-centric, not-for-profit financial cooperatives, providing public statements, educational op-eds, and conversations with Congressional leaders.

DCUC’s rapid and aggressive responses highlighted the undeniable $14 billion in annual savings credit unions deliver to their members coupled with the unparalleled financial stability provided to military families. Through tireless decades of advocacy, DCUC continues to educate lawmakers and the public about the stark differences between credit unions and profit-driven banks. DCUC’s efforts in preserving this vital tax status ensured credit unions can continue delivering lower rates, fewer fees, and community-focused services while standing strong against challenges by those who aimed to undermine their mission.

Preventing Changes to the Federal Credit Union Act (FCUA)
DCUC led efforts to block proposed amendments to the Federal Credit Union Act (FCUA) that would have extended National Credit Union Share Insurance Fund (NCUSIF) coverage to nonmembers. These changes not only threatened the cooperative foundation of credit unions but put the entire credit union industry’s tax status in peril. DCUC was forced to stand alone for a portion of this industry advocacy this year but didn’t falter in underlying how these proposals would expose and intensify credit union taxation arguments, break faith between all credit unions, and bring harm to credit unions, especially small and mid-size ones. Despite pushback, DCUC made every effort to educate industry trades of the ramifications these proposed amendments could bring to the entire industry. This resulted in improved collaboration later in the year through letters to Congress on concerns with amending the FCUA to the FY 2025 NDAA.

Through strategic advocacy with letters, Congressional staff meetings, and coalition-building, DCUC successfully maintained the integrity of the credit union system while reaffirming the importance of industry collaboration.

Shielding Credit Unions from Burdensome and Misguided Community Reinvestment Act (CRA) Regulations
This past year, DCUC aggressively fought attempts to impose CRA requirements on credit unions, vehemently arguing that these one-size-fits-all regulations are both redundant and fundamentally incompatible with the credit union cooperative model. Unlike profit-driven banks, credit unions inherently prioritize community reinvestment, serving underserved populations and military communities without being mandated by outdated frameworks designed for for-profit institutions.

DCUC worked tirelessly to educate policymakers cutting through misinformation to demonstrate that credit unions already surpass CRA goals through their mission-driven approach. This hard-fought advocacy preserved the operational flexibility credit unions need to continue delivering innovative, targeted financial solutions—free from unnecessary bureaucratic interference—to their members in military and low-income communities.

Introducing the Veterans Member Business Loan (MBL) Act
In 2024, DCUC was instrumental in introducing legislation to exclude loans made to veterans and military members from the definition of member business loans. This legislation seeks to remove barriers to accessing capital for veteran-owned businesses, fostering entrepreneurship and economic growth.

This bill represents a continuation of DCUC’s historic commitment to veterans, solidifying our leadership in advancing initiatives that honor the military community and ensure they have the resources to thrive in civilian life.

Defending Financial Choice: Preserving the “One Bank, One Credit Union” Policy on Military Bases
DCUC fought aggressively to protect the Department of Defense’s long-standing policy of allowing one bank and one credit union to operate on military bases. This critical regulation prevents financial monopolization by profit-driven institutions and ensures service members have access to competitive, mission-focused financial services.

Equally important, DCUC stood firm against misguided efforts to impose rent payments on credit unions operating on military installations. Our advocacy reaffirmed the millions of dollars in cost savings this policy provides, enabling credit unions to reinvest in offering free financial education, lower fees, and better rates for service members.

Filling Gaps in Federal Credit Union Advocacy
Recognizing the evolving challenges faced by credit unions, DCUC expanded its representation and efforts to address advocacy gaps at the federal level. In 2024, we established and grew our sub-councils to strengthen grassroots advocacy in key states, providing a platform for local credit unions to address regional issues.

We also deepened our collaboration with credit union leagues to ensure a unified voice on national policy issues. these initiatives enhanced DCUC’s ability to address emerging challenges while staying rooted in our members’ needs.

Launching the Defending Credit Unions PAC and National Advocacy Fund
DCUC revolutionized its credit union advocacy with the launch of the Defending Credit Unions Political Action Committee (DCU PAC) and the Defending Credit Unions National Advocacy Fund (DCU NAF). These initiatives represent a shift in the industry’s ability to confront legislative and regulatory challenges head-on.

Defending Credit Unions Political Action Committee (DCU PAC)
Launched in August 2024, the DCU PAC aims to elevate advocacy efforts on behalf of our nation’s credit unions serving military and veteran communities, both domestically and overseas. Mobilizing direct political engagement, DCU PAC amplifies and safeguards the voice of defense credit unions in all legislative and regulatory matters, ensuring lawmakers prioritize their interests.

Defending Credit Unions National Advocacy Fund (DCU NAF)
The DCU National Advocacy Fund is a targeted fund designed to keep the credit union movement at the leading edge of the dynamic political landscape, safeguarding the interests of all credit unions, especially those serving our military and veterans globally. The Fund will deliver a stronger voice and representation in all matters related to the operations and support of the entire credit union industry.

The establishment of the DCU PAC and National Advocacy Fund enhances DCUC’s ability to:

• Strengthen Political Engagement: Facilitate direct support for policymakers who champion credit union causes, ensuring that the unique needs of military and veteran communities are addressed.
  
• Enhance Grassroots Advocacy: Mobilize resources for public policy-related activities, including research, media campaigns, and grassroots initiatives, to effectively communicate the value of credit unions.
  
• Influence Policymaking: Maintain a strong presence in legislative and regulatory processes, safeguarding a prosperous future for defense credit unions and the broader industry.

Through these capacities, DCUC is better equipped to advocate for policies that protect and promote the interests of credit unions and their members in 2025 and beyond. The success of these initiatives relies on the active participation of credit unions across the country. By contributing to the DCU PAC and National Advocacy Fund, credit unions ensure that their interests are effectively represented in legislative and regulatory processes. To learn more and get involved, visit dcuc.org/DefendingCreditUnions.

Looking Ahead to 2025
In 2025, DCUC aims to:

• Defend the tax-exempt status of credit unions.
  
• Advocate for reforms at the CFPB to reduce regulatory burdens.
  
• Promote the Veterans Member Business Loan Act and Military Banking Improvement Act.
  
• Preserve the “One Bank, One Credit Union” policy and monitor the Overseas Military Banking Program.
  
• Expand its influence by strengthening partnerships and growing membership.
  

DCUC’s advocacy efforts in 2024 reinforced its role as the leading advocate for credit unions serving military and veteran communities. As we move into 2025, DCUC remains steadfast in advancing policies that enable defense credit unions to continue ensuring the financial well-being of those who serve our country.