Weekly Watch: March 28, 2025

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

This week, DCUC continued championing the voice of defense credit unions. We've engaged with congressional leaders on legislative reforms and fostered important discussions on issues that directly impact our members and the communities they serve!

We're pressed the importance of preserving the credit union tax status while also calling for clarity on CDFI programs, and the need to reform redundant and harmful overregulation.

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

Top Priorities This Past Week

• DCUC wrote to US Treasury Secretary Scott Bessent seeking clarity on CDFI programs and the anticipated Department's response to the March 14 EO: see more here.
• Today, the Treasury has stated all CDFI programs are legally required, according to American Banker.​
  
  • "The Defense Credit Union Council (DCUC) is heartened by the recent clarification from the U.S. Treasury Department affirming that all 11 programs within the Community Development Financial Institutions (CDFI) Fund are statutorily mandated. This confirmation underscores the indispensable role these programs play in bolstering economic growth and ensuring financial services reach underserved communities nationwide. DCUC has consistently championed the CDFI Fund’s mission, recognizing its pivotal contribution to defense credit unions dedicated to serving military personnel, veterans, and their families. The Treasury’s acknowledgment reinforces our collective commitment to fostering financial inclusivity and supporting the economic well-being of those who serve our country. We extend our gratitude to Treasury Secretary Scott Bessent for his prompt and supportive response to our concerns. DCUC remains steadfast in collaborating with the Treasury, the Administration, and Congress to ensure the continued success and enhancement of the CDFI programs. Together, we can advance initiatives that promote financial accessibility and empower our nation’s military families and low-income communities."
    
• On Monday, DCUC, the American Bankers Association, America’s Credit Unions, the Association of Military Banks of America, Bank Policy Institute, the Consumer Bankers Association, Independent Community Bankers of America, Electronic Payments Coalition, Mid-Size Bank Coalition of America, and National Bankers Association voiced their shared opposition to the Credit Card Competition Act (Durbin-Marshall bill) or any expansion of the Durbin amendment. See the official announcement here and DCUC's recap here.​
  
  • The joint letter stressed “any legislative initiatives to expand the power of the federal government to intervene in the U.S. credit card market” poses harm to consumers, small businesses, and financial institutions by reducing choices, increasing costs, and raising fraud risks.
    
• DCUC sent a letter to the House Financial Services Committee (HFSC) ahead of its subcommittee hearing on reforming the Consumer Financial Protection Bureau (CFPB), listing concerns with the CFPB's overreach, one-size-fits-all regulations, and redundant oversight.​
  
  • Past abuses at the CFPB have resulted in regulatory swings that stifle innovation, limit consumer choice, and burden financial institutions—including credit unions—with unclear and overreaching mandates. We have pressed this concern to congressional committees and how this could impact the financial service and access provided to communities across America, especially those currently underserved/remote locations, or military and veteran communities.
    
• DCUC expressed its opposition to the Consumer Financial Protection Bureau’s (CFPB) final rule on overdraft fees in a letter to Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-SC).
  
• DCUC commends Scott’s leadership in introducing S.J.Res.18 a Congressional Review Act (CRA) resolution to overturn the CFPB’s rule which passed with a final vote of 52-48. See more here.
  
• DCUC sent a letter to both the Senate Finance Committee and House Ways and Means Committee leaders, warning that eliminating the credit union tax exemption would significantly harm America’s communities, including service members, veterans, and their families, raising costs, reducing financial services access, and weakening military financial readiness.
  
• Yesterday, DCUC celebrated Congresswoman Monica De La Cruz's (TX-15) reintroduction of the VA Home Loan Awareness Act.​
  
  • Congresswoman De La Cruz’s official announcement shared: "We are forever grateful to our Veterans and their families for their sacrifices to our nation. Though we can never fully repay them, we can ensure they can access the benefits they deserve. Only a fraction of veterans are utilizing the significant advantages offered by the VA Home Loan Program. My bipartisan legislation ensures that our nation's heroes can access the benefits they earned, achieve homeownership, and live the American dream they fought to protect." - Congresswoman Monica De La Cruz The legislation has garnered robust support from the Veterans Association of Real Estate Professionals (VAREP) and the Defense Credit Union Council (DCUC). "We thank Congresswoman Monica De La Cruz for her leadership in reintroducing the 'VA Home Loan Awareness Act' to address the housing challenges faced by military families. The affordable housing crisis continues to place financial strain on service members and veterans, and policy solutions like this are essential to ensuring they have access to stable and affordable housing. Defense credit unions remain committed to supporting military families through innovative mortgage products and financial counseling, but legislative action is critical to expanding the overall impact we can offer to these communities. We look forward to assisting congressional leadership in their efforts to strengthen VA home loan programs and improve housing affordability for those who serve our nation." - Anthony Hernandez, DCUC President & CEO

Advocacy Discussions

• Overdraft Protection: A Lifeline For Credit Union Members, Not A Punitive Fee, featured by CUToday
  
  • "A recent CUToday article highlighted that consumers paid $12.1 billion in overdraft and NSF fees in 2024 – with credit union members shouldering about $5.4 billion of that total​. The piece suggests credit unions are “hitting” their members harder with these fees than banks. As representatives of defense-focused credit unions, we strongly disagree with this portrayal. Overdraft protection is a service – a valuable safety net that members choose, not an unfair penalty imposed on them. It’s time to set the record straight for policymakers and credit union leaders: credit unions provide overdraft programs to help members, not hurt them..." Read more here.
    
• Why Banks Selling to Credit Unions is a Win-Win for Everyone, featured by CU Daily
  
  • "Community banks and credit unions share a mission: serving their communities. In recent years, a growing number of community banks have chosen to sell to credit unions. As someone who advocates for credit unions, I believe this trend deserves praise, not skepticism. When a bank joins forces with a credit union, the result is a win-win – a smooth transition for the selling bank, better service for its customers, and a stronger local community. Below, I outline why these partnerships benefit all involved and address some common misconceptions along the way..." Read more here. 
    
• Taxing Credit Unions Would Hurt Communities And Help Wall Street, featured by CU Today
  
  • "In Washington, a battle is brewing over the future of our community-focused credit unions. The Independent Community Bankers of America (ICBA) is lobbying Congress to end the federal tax exemption for credit unions over $1 billion in assets, framing it as “ending an unfair subsidy. But let’s call this push what it really is: a blatant attempt to eliminate competition by punishing the very institutions that put consumers and communities first​. Stripping credit unions of their tax exemption won’t help taxpayers or level the playing field – it will line banks’ pockets at the expense of working families and small businesses​. This isn’t about fairness; it’s about Wall Street-driven banks trying to snuff out nonprofit credit unions that challenge their market share..." Read more here.

Join Our Efforts to Preserve the Credit Union Tax Status
 📣 The fight isn't over! Let’s present a united front to defend our industry and members!
 
Join us now by using the following tools we've prepared to assist your credit union:

1. CEO Letter to Congress: Download our pre-drafted letter that CEOs can send immediately to members of Congress. Simply review, personalize as needed, and hit send.
   
2. Staff Action: Amplify The Message. Encourage your staff to join this effort! Download this sample letter they can send to your state Representatives and Senators. The more voices we raise, the stronger our impact.
   
3. Credit Union Member Letter: Offer this sample letter to your membership to empower your members to share their voices with Congress.

 
Use these links to find your Senators and Representatives.
 
Time is of the essence. We must ensure our elected officials understand that taxing credit unions will harm the very people we serve, our Nation's military personnel, veterans, and their families.
 
Thank you for standing with us in this critical fight.