WASHINGTON—The Defense Credit Union Council (DCUC) has sent two separate letters to Capitol Hill addressing, respectively, financial protections for seniors and warning against potential policy changes that could affect credit unions and the communities they serve.
In a letter to Rick Scott (R-FL), chairman of the Senate Special Committee on Aging, and Kirsten Gillibrand (D-AZ), the panel’s ranking member, DCUC highlighted the growing threat of financial fraud targeting older Americans ahead of a committee hearing on financial literacy and fraud prevention.
DCUC said older adults, including military retirees and veterans, face increasing exposure to scams that result in billions of dollars in losses annually, many of which go unreported. The group emphasized that credit unions play a key role in helping seniors protect their finances through education, monitoring and intervention.
‘Increasingly Targeted’
“Older Americans, especially veterans and military retirees, are increasingly targeted by sophisticated financial scams, making financial education and fraud prevention more important than ever,” Jason Stverak, DCUC’s chief advocacy officer, wrote in the letter.
DCUC told the members of Congress credit unions combine financial education with practical safeguards—often described as “fraud friction”—to prevent scams before funds are lost. These efforts include fraud alerts, targeted education programs and support for initiatives such as the Veterans Benefits Banking Program, which helps ensure safe access to federal benefits.
The organization also outlined policy recommendations for lawmakers, including strengthening fraud prevention and recovery tools, expanding financial literacy programs, improving coordination between government agencies and financial institutions, and modernizing federal resources aimed at protecting seniors.
Letter on Budget
Separately, DCUC sent a second letter to House Budget Committee leaders, including Chairman Jodey Arrington (R-TX) and Ranking Member Brendan Boyle, (D-PA) ahead of a hearing on the president’s fiscal 2027 budget request.
In that letter, DCUC warned against using the federal tax-exempt status of credit unions as a budgetary offset, saying such a move could reduce access to affordable financial services and weaken economic stability, particularly for military families and underserved communities.
The group also raised concerns about what it described as potential “backdoor” efforts to erode that tax status through additional compliance requirements, such as mandating IRS Form 990 filings for credit unions.
Opposition to Cuts
In addition, DCUC strongly opposed proposed cuts and restructuring to the Treasury Department’s Community Development Financial Institutions Fund, which supports lending and investment in low-income and underserved communities.
“The decisions made in the FY2027 budget will have real consequences for financial readiness and resilience, especially for military families and veterans,” DCUC President and CEO Anthony Hernandez said in a statement. “Credit unions are a proven, mission-driven model that returns value directly to members, especially in times of financial stress.”
DCUC urged lawmakers to reject any efforts to use credit union tax status as a budget offset, oppose policies that could indirectly weaken that status, and maintain robust funding for CDFI programs.
