Weekly Watch: February 21, 2025

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

With the U.S. House out this week, we anticipated a quieter week in terms of advocacy. However, there are still key developments to monitor.

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

Top Priorities This Week
​DCUC sent letters to the Senate Health, Education, Labor & Pensions Committee ahead of the nominations of Lori Chavez-DeRemer for Secretary of Labor and Linda McMahon for Secretary of Education. See our press releases here.

In both letters, DCUC highlighted concerns about proposed overtime exemption changes, fiduciary duty regulations under ERISA, unionization policies, worker classification rules, and the need for stronger partnerships to enhance financial readiness for military personnel.

DCUC urged policymakers to consider the unique role of defense credit unions and implement exemptions to avoid unnecessary burdens.

DCUC also stressed the importance of financial literacy, student loan reforms, and protections against predatory lending for military families. DCUC advocated for enhanced financial education partnerships, streamlined loan forgiveness for service members, and reduced regulatory barriers for defense credit unions' involvement in student lending. DCUC referenced a case study from Redstone FCU to share examples of successful financial education initiatives.

DCUC called on the committee to ensure DOL and DOE policies align with the needs of military members, veterans, and their families while minimizing regulatory obstacles for defense credit unions.
Budget Reconciliation
DCUC is closely monitoring developments, particularly related to the credit union tax status and potential efforts to include the CCCA or similar interchange proposals. While discussions within the House suggest that all options are being considered, we remain committed to advocating for the preservation of the credit union tax status.
CFPB
We are keeping a close watch of the situation following the Executive Order Tuesday, which would require the NCUA, CFPB, and other federal agencies to report to the Executive Branch.

DCUC has been the leading advocate for a strong and independent NCUA. We will continue to track developments as this unfolds, especially as public interest groups explore potential legal avenues in response to this requirement.

CFPB Leadership Changes – DCUC supports scaling back excessive regulation while maintaining consumer protections.

Vought as Acting Director – We anticipated efforts to curb regulatory overreach. With strong support from Democratic leaders, the agency is unlikely to be dismantled; however, DCUC is closely monitoring developments for clarity on regulatory direction to avoid a “gray zone” that could lead to compliance risks.
Status of H.R. 975 Credit Union Board Modernization Act
"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."

Advocacy Discussions
Why Preserving the NCUA's Independence is Critical, Featured on Tyfone
Defense credit unions are mission-driven financial institutions that exist solely to serve those who serve our country. Unlike traditional banks, defense credit unions operate on military installations worldwide, providing critical financial services that enhance military readiness, financial security, and overall quality of life for our troops. The independence of the NCUA is fundamental to the continued success of these institutions and, by extension, the readiness of our Armed Forces. Read more here.


Bair Op-Ed Criticizing the CU Tax Exemption is Misleading and Biased, 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.


DCUC Discusses the Ongoing Credit Union Tax Debate, Listen at the CU 2.0 Podcast


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.


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.