 Your weekly advocacy update: Stay informed, take action, and champion the voice of America’s defense credit unions! Next week is shaping up to be a busy one with a potential government shutdown on the horizon. Please don’t hesitate to reach out with any questions, and see below for a recap of what DCUC covered this week. Stay up to speed as we push forward! Follow along with our weekly announcements here. Top Priorities This Past Week DCUC is advancing several key advocacy priorities in Congress—protecting servicemembers’ pay during government shutdowns and expanding access to capital for veteran-owned small businesses. In our letter to Representative Jennifer Kiggans, we called for swift passage of the bipartisan measure to ensure servicemembers and their families are never left financially vulnerable during government shutdowns. We stressed that for too long, servicemembers have faced delayed paychecks amid budget gridlock. And while credit unions have repeatedly stepped up with emergency loans, payroll advances, and other relief programs, these are stopgaps—not solutions. The Pay Our Troops Act is a moral imperative that guarantees those who defend our nation are paid on time, no matter what. Read more here. Earlier this week, DCUC also called attention to a recent Washington Reporter article that highlights a poll revealing that 62% of voters – across party lines – support eliminating the federal cap on small-business loans by credit unions. Support was especially strong among Republican voters, with 71% in favor, signaling real momentum for legislative action in this Congress. By a 41-point margin, Americans want to empower credit unions to lend more to small businesses – a decisive mandate in today’s polarized political climate. We immediately activated a grassroots advocacy initiative, alerting our member credit union leaders to contact their Congressional representatives and providing key messaging for their outreach. See our sample letter here. This poll shows what we’ve known all along: Americans want credit unions to do more to support small businesses. By starting with the Veterans Member Business Loan Act, credit unions are uniting behind a commonsense, bipartisan solution that puts veteran entrepreneurs first. This is the first step toward finally repealing the outdated member business lending cap—and credit unions are ready to lead the charge. Read full press release here. DCUC and ALM First Announce Strategic Partnership
This week, the Defense Credit Union Council (DCUC) and ALM First announced a new strategic partnership!
NCUA Updates Yesterday, DCUC commended the National Credit Union Administration (NCUA) for eliminating the use of “reputational risk” and similar concepts in its examination and supervisory process. This important update follows White House Executive Order 14331, Guaranteeing Fair Banking for All Americans, which directs federal regulators to remove standards that could enable politicized or unlawful debanking. DCUC requested that the NCUA discontinue the use of reputational risk in two recent letters to the agency. We are pleased to see our efforts were successful. We look forward to continuing to work with the NCUA on developing balanced guidelines that ensure fair, unbiased access to financial services while still maintaining prudent risk management. Read the NCUA's official announcement DCUC also commended the NCUA for proposing a prudent right-sizing of its budget and workforce in the 2026–2027 draft. This proposal to reduce staff and expenditures reflects the changing reality of our industry: With fewer credit unions to supervise, it makes sense for the agency’s budget to contract accordingly. By streamlining operations, the NCUA is demonstrating fiscal responsibility while still upholding its core mission to regulate and insure credit unions. Opposing Durbin Marshall Proposed Mandate This week, America’s Credit Unions and DCUC co-sponsored Punchbowl News’ daily newsletters highlighting the united opposition of credit unions across the country to the Durbin-Marshall mandates. See more here. Government Funding We have already heard from several member credit unions about the steps they are taking to support their military communities, and we look forward to gathering additional perspectives. These insights will be featured in a letter to congressional leaders highlighting the vital role credit unions play in supporting military families during government shutdowns. We invite you to share how your credit union is helping protect the financial well-being and readiness of our Nation’s military communities by emailing us at [email protected]. To assist our members with preparations, DCUC offers key resources, including an overview for government shutdown preparedness and a member communications template. Advocacy Discussions
DCUC: Repeal the outdated MBL cap now, featured on Tyfone Few Americans realize that federal law limits credit unions from lending more than 12.25% of their total assets to small businesses. This Member Business Lending (MBL) cap was imposed in 1998 – an era when smartphones didn’t exist and the needs of modern entrepreneurs weren’t on Congress’s radar. Today, that arbitrary cap persists as a relic of the past, one that industry experts have rightly criticized as a barrier to economic growth and affordable financing for small businesses. In practice, it means credit unions often hit a ceiling that prevents them from extending additional loans to local startups and Main Street shops, even when those businesses are creditworthy and in need of capital. This isn’t about safety or soundness – there was never a solid economic rationale for the 12.25% cap. It’s an artificial number born of politics, and its continued existence is holding back community businesses and job creation in towns across America. Read more here. Comments are closed.
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