WASHINGTON — The Defense Credit Union Council is urging congressional leaders to include a dedicated financial services section in the fiscal 2027 National Defense Authorization Act, saying such a provision could provide a path for three credit union measures involving liquidity, loan maturities and lending to veteran-owned businesses.
In a letter to House and Senate leaders, DCUC asked Congress to establish a legislative pathway for a negotiated financial services package as lawmakers work on the annual defense authorization bill.
DCUC said it is not seeking to have unrelated or controversial financial services measures hold up passage of the NDAA. Instead, the organization is calling for bipartisan negotiations among congressional leaders and the committees with jurisdiction over the issues.
“Financial readiness deserves a place in the broader conversation about national defense,” DCUC President and CEO Anthony Hernandez, a retired U.S. Air Force colonel, said in a statement.
“A carefully constructed financial services section would give Congress an opportunity to strengthen the institutions serving military communities and expand responsible financial options for those who serve,” Hernandez said.
DCUC Seeks Three Credit Union Measures
DCUC said it wants a financial services section to include three measures it has previously identified as priorities for the FY2027 NDAA:
- Central Liquidity Facility changes. DCUC is seeking permanent enhancements to the National Credit Union Administration’s Central Liquidity Facility, including provisions contained in the bipartisan NCUA Central Liquidity Facility Enhancements Act, S. 3575. The legislation would make changes involving credit unions’ access to the CLF through agent members.
- Longer federal credit union loan maturities. The council is supporting provisions reflecting the Expanding Access to Lending Options Act, H.R. 4167 and S. 3616. DCUC has said the legislation would extend the allowable maturity for certain federal credit union loans from 15 years to 20 years, giving institutions greater flexibility to structure longer-term financing.
- Veteran business lending. DCUC wants lawmakers to include the Veterans Member Business Loan Act, H.R. 507 and S. 110. The legislation would exclude qualifying loans to veteran-owned businesses from the statutory credit union member business lending cap, which generally limits such lending to 12.25% of assets.
DCUC has previously pushed for all three proposals as part of its broader legislative agenda, including during earlier congressional consideration of the FY2027 NDAA.
‘Creating the Legislative Opportunity’
DCUC Chief Advocacy Officer Jason Stverak said the immediate goal is to ensure there is a mechanism in the NDAA for Congress to consider the proposals.
“Our request starts with creating the legislative opportunity,” Stverak said. “We are asking congressional leaders to work toward a financial services section, and we hope the resulting agreement includes these three priorities.”
Stverak said the proposals address credit unions’ ability to prepare for liquidity disruptions, provide borrowers with appropriate repayment terms and make loans to veteran-owned businesses without being constrained by what DCUC considers an unnecessary statutory barrier.
DCUC has argued that the CLF changes would strengthen the credit union system’s emergency liquidity backstop. The organization also has said longer loan maturities could lower monthly payments for some borrowers, while the veterans lending legislation could increase the amount of credit union capital available to veteran entrepreneurs.
‘Congress Does Not Have to Choose’
Hernandez said Congress could address those issues without detracting from the NDAA’s primary defense mission.
“Congress does not have to choose between protecting the NDAA’s defense focus and addressing the financial needs of the people who sustain that mission,” Hernandez said. “The opportunity is to bring those objectives together through a disciplined, bipartisan agreement.”
DCUC said it plans to continue working with congressional leadership and committees with jurisdiction as lawmakers negotiate the defense authorization legislation.
