By Jason Stverak
Washington may be at a standstill, but the Defense Credit Union Council’s advocacy is moving full speed ahead. While federal agencies lock their doors, DCUC is on Capitol Hill ensuring our military community’s financial needs aren’t ignored. Just this month, I sent a letter to Congress urging lawmakers to include the Pay Our Troops Act of 2026 and Pay Our Coast Guard Parity Act of 2025 in the final defense budget – permanent fixes so servicemembers never miss a paycheck due to political gridlock.
“Those who defend our nation deserve financial certainty and should never be used as bargaining chips in a budget standoff,” I told them.
As of the end October, 1.3 million active-duty servicemembers were poised to miss their paychecks because of the impasse. Defense credit unions have stepped up with emergency 0% loans, fee waivers, and skip-pay programs to bridge the gap for our military families – living proof of the credit union difference. But stop-gap relief isn’t a substitute for stability.
Emergency Loans Shouldn’t be Needed
“No family serving our nation should have to depend on emergency loans or charity to put food on the table during a political impasse,” I’ve reminded Congress.
Even with the federal government closed, now is the critical window to engage lawmakers and staff. Fewer distractions on the Hill means more opportunities for us to drive home why these fixes must pass. DCUC’s message is clear: take care of those who serve our country, shutdown or no shutdown.
Final NDAA Showdown: Securing Wins and Stopping Sneak Attacks
The annual National Defense Authorization Act (NDAA) is entering final negotiations, and DCUC is in the trenches to safeguard our hard-won victories. Both the House and Senate have passed their versions of this must-pass defense bill – now comes the endgame of merging them.
We’re laser-focused on making sure the pro-credit union provisions in the Senate’s NDAA survive. Chief among them is the extension of NCUA’s Central Liquidity Facility (CLF), a vital backstop that helps credit unions support members through crises. The Senate wisely included the CLF Enhancement Act in its NDAA draft, recognizing its importance for military readiness and financial stability.
Another win we’re guarding is a bipartisan package of Community Development Financial Institution measures championed by Senators Steve Daines (R-MT) and Mark Warner (D-VA). These CDFI provisions, folded into the Senate NDAA, would strengthen the CDFI Fund and expand affordable services in military base communities and other underserved areas. DCUC applauded this Senate leadership – it’s exactly the kind of forward-looking policy that keeps our troops and veterans financially secure.
On High Alert
At the same time, we’re on high alert to keep unrelated riders out of the final NDAA. You’ve probably heard of the most notorious one: the Credit Card Competition Act (CCCA).
Earlier this year, retail lobbyists attempted a backdoor maneuver – trying to latch the CCCA onto the defense bill as an amendment. We sprang into action alongside credit union allies to defeat that dangerous legislative shortcut, warning Congress that letting CCCA hitch a ride on NDAA would make our military members “collateral damage in a corporate lobbying fight”.
Thankfully, lawmakers heeded our warnings. The House passed its NDAA with no interchange cap amendments, rejecting the ploy outright. This was a huge win: CCCA has no place in defense policy. We’ve stressed from day one that the CCCA would gut fraud protections, kill off credit card rewards, and saddle small credit unions with crushing costs – and worse, it threatens on-base financial education programs, scholarships, and military readiness initiatives that interchange revenue funds on our installations.
For defense credit unions in particular, interchange income isn’t about corporate profit – it’s what funds low-interest emergency loans for junior enlisted, deployment relief programs for military families, and financial counseling on base.
A Windfall for Some, But…
We cannot let a retail windfall come at the expense of our servicemembers. DCUC fought hard to keep the CCCA out, and we’re prepared to guard the conference committee against any last-minute sneak attacks. Our stance is unwavering: keep non-germane banking pet projects out of the defense bill. We’ll work with our allies on Capitol Hill to ensure the final NDAA stays laser-focused on protecting military financial services – not advancing unrelated agendas.
The Final Stretch
As we enter this final stretch, I urge every defense credit union leader: stay vocal and stay vigilant. Use this period (while negotiations simmer) to remind your representatives how these NDAA issues impact the bases and military communities you serve. DCUC will be monitoring every twist and turn. We’ve come too far to let our victories slip away now or to let harmful provisions creep in through the back door.
Guarding Our Foundation: Tax Status, CRA, and Regulatory Independence
Even as we engage in the shutdown and NDAA battles, DCUC is keeping a watchful eye on other major policy fronts that affect every credit union. The defense-forward perspective guides us, but these broader issues are just as critical to our mission’s future. Beyond the defense bill, here are three key fronts where we’re holding the line:
Credit Union Tax-Exempt Status
Our tax exemption is not a “perk” – it’s the bedrock of how we deliver member value. It allows credit unions to reinvest roughly $22 billion every year in direct benefits to our members, instead of sending those dollars to Washington. That means lower rates on loans, fewer fees, and special programs that for-profit banks won’t provide – all of which are especially critical for military families who rely on affordable financial services.
Bank lobbyists would love to chip away at our tax status to handicap our competitive edge. DCUC’s message to Congress: hands off. Taxing credit unions would only hurt the very communities – bases, barracks, and hometowns – that depend on us. We’re making sure lawmakers know the real-world impact of our not-for-profit model, and we won’t let false narratives undermine this pillar of the credit union difference.
Community Reinvestment Act (CRA) Expansion
There’s renewed talk in D.C. about subjecting credit unions to bank-style CRA examinations. Let’s be clear: the CRA was created to curb discriminatory lending by for-profit banks – it was never about credit unions, which by design reinvest in their communities.
We already fulfill CRA’s goals every day by serving people of modest means and reaching the underserved. Piling redundant CRA regs onto credit unions would siphon resources away from member service with little benefit. As we’ve pointed out publicly, “credit unions have an exemplary record of member service to stand on. This is why Congress has not seen fit to impose punitive CRA requirements on them, and there’s no reason to do so now.”
Our member-owned, community-focused structure is the gold standard for fair lending – lawmakers know it, and DCUC is working to ensure they don’t saddle us with costly new mandates that we simply don’t need. We will resist any unwarranted CRA expansion at every turn.
NCUA Independence
A strong, independent regulator is critical to the safety and soundness of the credit union system. The National Credit Union Administration (NCUA) exists to oversee our industry without political interference, and it must stay that way. Some proposals floating around (or misguided “reforms”) could threaten to politicize the NCUA or bring it under stricter congressional thumb – moves that undermine its autonomy.
DCUC is on guard against any attempt to erode the NCUA’s independent oversight authority. We need NCUA focused on our mission and the unique needs of our military and veteran members, not mired in bureaucratic power plays. DCUC will fight to preserve a strong NCUA that stands up for credit unions, not overburdens them. Our message to policymakers: respect the NCUA’s independence and expertise, and don’t tinker with a regulatory framework that works.
DCUC recognizes the urgency of this moment on all these fronts. Safeguarding our tax status, opposing unwarranted CRA expansion, and preserving a strong, independent NCUA each require a unified, all-hands effort from our industry. These aren’t just policy preferences – they are existential issues that strike at the core of our mission to serve those who serve our country. You better believe we’re treating them with the full-court press they deserve.
United and Aggressive Through Year-End
The takeaway for every credit union in our defense community is this: stay united, stay aggressive, and keep fighting through the legislative endgame of 2025. We’ve proven time and again that when credit unions speak up with one voice, we can beat back misguided policies and protect our members.
The recent interchange battle was a perfect example – by flooding Congress with the truth, we stopped a harmful provision in its tracks. But we can’t rest on our laurels. In the coming weeks, Congress will be making big decisions – on funding the government, on the NDAA, and on year-end omnibus bills – and bank lobbyists haven’t gone on holiday. They’re looking for any crack in our defenses to slip in provisions that advantage Wall Street over Main Street. We must remain as relentless as ever in making our case.
Leading the Charge
DCUC will continue leading the charge, but we need every defense credit union engaged and at the table. This is a rallying cry: call your lawmakers, share your stories of serving military members, write those op-eds in your local papers, and remind Congress who we serve and why it matters. We have a powerful story and a track record of solutions that work for servicemembers, veterans, and their families. Now’s the time to double down on telling it.
Despite the challenges – a government shutdown, heated debates on the Hill, and lobbyists trying to piggyback their agendas – I’ve never been more confident in the strength of our collective voice. Credit unions are stronger together. By standing united and speaking out, we will protect our tax status, keep our regulator independent, and stop any threat that stands between our members and their financial well-being.
The stakes are high, but so is our resolve. The opportunity to shape a better future for our military and veteran communities is within our grasp – if we act boldly, decisively, and together.
Boots on Ground, Voices in Ears
So let’s keep our boots on the ground and our voices in the ears of Congress. Shutdown or not, DCUC and the credit unions of this nation’s defense community will never shut up or stand down when our mission is on the line. Our servicemembers and their families count on us every day – and we will continue to fight for them, every day, with everything we’ve got.
Now, onward to the finish line of 2025. Stay united, stay vigilant, and let’s deliver victory for those who serve our country.
Together, we’ve got this.
Jason Stverak is chief advocacy officer at the Defense Credit Union Council.
