Weekly Watch: February 14, 2025

Your weekly advocacy update: Stay informed, take action, and champion the voice of America’s defense credit unions!

It’s been another busy week for DCUC, packed with several letters, articles, and public statements regarding recent legislative action that directly impacts your credit union.

One thing is for certain—DCUC remains committed to ensuring your credit union is heard and well-represented.

Stay up to speed as we push forward! Follow along with our weekly announcements here.

​Top Initiatives This Week
​DCUC & DAKCU Urge Congressional Support of Rural Credit Unions Amid Farm Economy Crisis – urged the House Agriculture Committee to address competitive imbalances between credit unions and the Farm Credit System (FCS). Our letter called for legislative measures to strengthen rural credit unions, increase oversight of FCS, and adjust lending caps to better support farmers, ranchers, and rural communities.

DCUC Calls for Clear Digital Asset Guidelines to Support Credit Unions – highlighted regulatory challenges in integrating digital assets. Our letter called for clearer guidance from the NCUA, fair access to Federal Reserve payment systems, and regulatory parity to ensure credit unions can innovate while maintaining consumer protections.

DCUC Outlines Challenges Facing Defense Credit Unions Ahead of Senate Committee Hearing – shared how excessive regulation threatens credit unions' ability to serve members. We oppose expanding the Community Reinvestment Act (CRA) to credit unions and advocate for preserving NCUA’s independence, enhancing cybersecurity, and expanding lending to veteran-owned businesses.

DCUC Requests Necessary Regulatory Reform to Support Credit Unions – pushed for reforms to reduce excessive compliance costs that stifle credit unions' growth and innovation. We recommended regulatory sandboxes, streamlined compliance requirements, and improved communication between regulators and credit unions.

DCUC Urges House VA Committee to Address Bureaucratic Barriers to Better Serve Veterans, Improving VA Benefit Services – proposed solutions to streamline VA home loan processing, improve GI Bill payment timeliness, and modernize direct deposit systems to ensure veterans receive benefits efficiently.

DCUC Letter to House Small Business Committee – urged policymakers to include credit unions in SBA lending programs, highlighting their role in serving underserved areas. We advocated for the Veterans Member Business Loan Act (VMBLA) to exempt veteran-owned businesses from restrictive lending caps, expanding their access to capital.

DCUC Letter to House Financial Services Committee – addressed over-regulation, tax policy threats, and lending restrictions affecting defense credit unions. We called for maintaining the federal credit union tax-status, opposing proposed interchange legislation that restricts credit access, and supporting legislation like the VMBLA and Military Financial Services Protection Act to enhance financial access for veterans, service
members, and their families.

DCUC Letter to Senate Indian Affairs Committee – emphasized the financial challenges faced by Native American communities, particularly in banking deserts. We advocated for policies that expand credit union services to combat financial exclusion, predatory lending, and economic disparities.

DCUC Letter to House Budget Committee – advocating for the preservation of the credit union tax exemption as the committee deliberates on federal budget and reconciliation.

Update!
Recent news surrounding the status of H.R. 975 Credit Union Board Modernization Act:
"Last week, DCUC sent a letter to Congress expressing strong support for the Credit Union Board Modernization Act (H.R. 975). This bipartisan legislation, introduced by Representatives Juan Vargas (CA-52) and Bill Huizenga (MI-4), seeks to amend the Federal Credit Union Act to provide greater flexibility in board meeting requirements, reducing operational burdens while upholding strong governance. We were grateful to see a swift passage through the House and also extend our gratitude to Senators Bill Hagerty and Lisa Blunt Rochester for introducing the Senate companion bill, S.522. Enacting this legislation will enhance financial readiness for military communities and empower credit unions to serve them more effectively."


Join Our Efforts to Preserve the Credit Union Tax Status

📣 Act now! Let’s present a united front to defend our industry and members!

DCUC is actively pushing back on these false narratives and tired reasoning; see recent attacks published on the Washington Post, Punchbowl News, and American Banker. Congress needs to hear from you on this issue.

Please use this member letter to contact your state Representatives and Senators. We also encourage each of you to prepare and discuss with each of your Leagues.

As the new Congress takes shape and budget reconciliation debates intensify on Capitol Hill, we will continue to actively counter these and other banker attacks on our industry and keep you updated as this situation unfolds.


Advocacy Discussions
Bair Op-Ed Criticizing the CU Tax Exemption is Misleading and Biased, featured on Credit Union Times Tax On Credit Unions Is A Tax On Our Military, featured on Credit Union Times
"Sheila Bair’s recent opinion piece in The Washington Post misrepresents the fundamental role of credit unions, their tax-exempt status, and their impact on financial services. Her arguments reflect a biased perspective favoring banks, which have long sought to eliminate competition from credit unions despite enjoying their own advantages, including government bailouts, tax loopholes and significant regulatory benefits. The Defense Credit Union Council (DCUC), representing the credit unions that serve military members, veterans and their families, strongly refutes these claims and presents the following facts..."

Read more here.

See Credit Union Times' additional coverage, titled "Volume Turned Up to Protect CU Tax Status During House Budget Hearing" here.

 
Will Congressional Review Act Resolutions Put An End To CFPB Overdraft Rule, featured on CUToday
DCUC strongly supports the recent actions taken by House Financial Services Committee Chairman French Hill (R-AR) and Senate Banking Committee Chairman Tim Scott (R-SC) in introducing Congressional Review Act (CRA) resolutions to repeal the Consumer Financial Protection Bureau’s (CFPB) final rule capping overdraft fees for banks and credit unions. DCUC commends this critical effort to protect access to, and uphold responsible, essential financial services.

"DCUC applauds House Financial Services Chair French Hill and Senate Banking Chair Tim Scott for addressing this flawed rule,” said Anthony Hernandez, DCUC president/CEO. “Consumers, particularly military and veterans, rely on robust overdraft protection programs not only as they organize, train, and equip to fight our nation’s wars, but especially when they are in harm’s way and cannot flex to keep bills on track back home. Without overdraft, late fees from utility companies, rental agreements, and other day-to-day expenses would become overwhelming."

Read more here.

 
DCUC’s Jason Stverak on Today’s Real Threat to CU Tax Exemption, Listen at The CU2.0 Credit Union Podcast

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​If you have any questions, concerns, or wish to discuss these or other advocacy matters, please do not hesitate to Jason Stverak, DCUC Chief Advocacy Officer at [email protected] or 202.557.8528.