WASHINGTON — The Defense Credit Union Council is urging Congress to keep the fiscal 2027 National Defense Authorization Act focused on military readiness while advancing legislation to expand lending for veteran-owned businesses and preserve credit unions’ role in federal financial policymaking.
In three separate letters to House lawmakers and committees, the credit union trade association outlined legislative priorities ranging from opposition to last-minute financial services provisions in the annual defense bill to support for regulatory reforms it says would strengthen financial readiness for servicemembers, veterans and their families.
Ahead of House consideration of the NDAA, DCUC urged lawmakers to reject what it called unrelated financial services riders, arguing the defense bill should not become a vehicle for broader banking policy.
Opposition to Credit Card Competition Act
Among the proposals the organization opposed were the Credit Card Competition Act, the Durbin-Marshall interchange proposal, credit card payment-routing mandates, debit or credit interchange fee caps, and studies or reporting requirements examining interchange fees at military commissaries, exchanges and other on-base retail locations. DCUC also objected to proposals that would extend National Credit Union Share Insurance Fund coverage to nonmembers, arguing such changes would weaken the traditional member-owned credit union model and should instead be considered through the regular legislative process.
The organization also cautioned against late-stage provisions that would alter how on-base financial institutions serve military installations, commissaries and exchanges without consultation with the Department of Defense, the National Credit Union Administration and the institutions serving military communities.
Support for Other Measures
Rather than adding unrelated financial provisions, DCUC urged Congress to include bipartisan measures it said would improve military financial readiness, including the Veterans Member Business Loan Act, reforms to the Central Liquidity Facility under the Padilla-Cramer proposal, and greater loan maturity flexibility for federal credit unions.
“Defense credit unions are financial readiness partners for the military community,” DCUC President and CEO Anthony Hernandez said in a statement. “The NDAA should strengthen, not distract from, our national defense mission.”
Letter to House Small Business Committee
In a separate letter submitted ahead of a House Small Business Committee hearing, DCUC endorsed the bipartisan Veterans Member Business Loan Act, legislation that would exempt loans made to veterans from the federal cap on member business lending by credit unions.
The group argued veteran entrepreneurs often encounter barriers to obtaining financing because military service can leave them with shorter civilian credit histories, limited traditional collateral and employment records complicated by deployments, relocations and career transitions. As a result, many veterans rely on personal savings, credit cards or higher-cost financing to start or expand businesses.
DCUC said removing veteran loans from the business lending cap would allow credit unions to serve more qualified veteran-owned businesses while maintaining existing underwriting standards and regulatory oversight. The organization emphasized the proposal would not require taxpayer funding or alter safety-and-soundness requirements.
The trade group also urged the House Small Business Committee to work with the House Financial Services Committee and House leadership to move the legislation forward.
Letter Sent Ahead of Oversight Hearing
In a third letter, submitted before a House Appropriations subcommittee oversight hearing with Office of Management and Budget Director Russell Vought, DCUC called on lawmakers to preserve credit unions’ voice in federal policymaking and protect community development funding.
Specifically, the organization asked lawmakers to seek commitments from the administration to restore the Consumer Financial Protection Bureau’s Credit Union Advisory Council, or establish a comparable advisory body, to ensure credit unions have formal input before major regulatory decisions are made.
DCUC also urged Congress to maintain a risk-based consumer protection approach that focuses enforcement on bad actors and higher-risk nonbank financial firms while reducing unnecessary regulatory burdens on credit unions already supervised by the National Credit Union Administration.
Distribution of Appropriations Urged
Additionally, the organization asked lawmakers to ensure timely distribution of appropriated Community Development Financial Institutions Fund and NCUA Community Development Revolving Loan Fund resources, warning that delays or additional administrative requirements could reduce access to affordable financial services in underserved communities, including military families.
The letter also encouraged lawmakers to ask Vought how the administration would preserve key CFPB functions, including servicemember protections, complaint handling, financial education and compliance assistance, while ensuring government efficiency initiatives do not disrupt congressionally authorized financial inclusion programs.
Jason Stverak, DCUC’s chief advocacy officer, said credit unions should have “a meaningful seat at the table” when federal policies affecting their members are developed, adding that the group’s recommendations would strengthen financial access, consumer protection and military financial readiness.
Letter Sent With Recommendations for FHA
Separately, America’s Credit Unions joined with other organizations in a letter that reaffirms their recommendation that the Federal Housing Administration (FHA) align Single-Family Minimum Property Requirements (MPRs) with government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
The letter follows an FHA request request for input in response to White House Executive Order “Promoting Access to Credit,” which among other things sought feedback on ways to improve collateral valuation processes, including changes to the minimum property requirements.
The Specifics
Specifically, the organizations:
- Request that FHA adopt the GSE property condition rating system along with the GSE minimum property requirements. This would replace the current “subject to repair” MPR standards that apply regardless of the verall condition or habitability of the property
- Include a table that presents summaries of the current MPRs for FHA, Fannie Mae, Freddie Mac, and VA for comparison. Also included are thoughts on which current industry standard FHA should consider adopting.
