WASHINGTON—Ahead of separate Senate hearings on national defense funding and the regulation of digital assets, respectively, the Defense CU Council and America’s Credit Unions have sent letters to the Hill.

In its letter sent ahead of mark-up on the National Defense Authorization Act (NDAA) by the Senate Appropriations Subcommittee on Financial Services and General Government, DCUC advocated for the full restoration of Fiscal Year 2026 funding for the CDFI Fund, citing its  irreplaceable role in promoting financial stability among servicemembers and distressed communities.”

Points Made

Among the key points made in the letter:

• Serving Neglected Markets. Nearly 500 CDFI-certified credit unions serve over 19 million Americans, many located near military installations. “These institutions offer affordable small-dollar loans, financial education, and emergency relief in areas often neglected by traditional banks,” DCUC said.
• Military Readiness Through Financial Readiness. “The CDFI Fund supports servicemembers’ financial stability, directly enhancing military readiness. Grants have enabled defense credit unions to open branches in banking deserts and provide alternatives to predatory lenders,” according to DCUC.
• Proven Return on Investment. “In FY 2024 alone, CDFIs delivered $24 billion in financing, supporting 109,000 small businesses and 45,000 affordable housing units. For every federal dollar invested, $8–$12 in private capital is generated,” said DCUC, which recommended restoring funding to, at least, the FY 2025 enacted level of $324 million. It warned that defunding the program would reverse decades of progress and undermine military financial resilience.

America’s CUs’ Letter

In its letter to the Senate Armed Services Committee America’s Credit Unions President/CEO Jim Nussle called on Congress to reject unrelated amendments pertaining to interchange, rate caps, and military banking policy.

“These are unnecessary policy provisions that distract from the focus on more urgent national security concerns,” Nussle wrote. “Credit unions—especially the nearly 200 Defense Credit Unions—remain the best source for safe, affordable financial services for our men and women in uniform.”

Key Points

The letter:

• Calls for a “clean” NDAA with no unrelated financial services amendments. 
• Opposes inserting language on interchange fees, interest rate caps, or military base banking reforms.
• Emphasizes the value of defense credit unions, which serve over 40 million members and have supported military families for over a century.
• Reaffirms the strong bond between credit unions and military communities, grounded in affordability, service, and financial education.

The full letter can be found here.

DCUC Letter on Digital Assets

DCUC also sent a letter to the Senate Banking Committee ahead of today’s hearing, “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.”

In its letter, DCUC recommended:

• Congress establish consistent rules for digital assets to allow credit unions to safely and responsibly offer these services.
• Regulatory parity: credit unions must be able to compete on equal footing with banks. DCUC said it supports granting the National Credit Union Administration (NCUA) oversight of digital asset activities within credit unions
• Federal supervision of stablecoin issuers, including non-bank entities, to ensure sound risk management and AML compliance.
• As digital markets expand, strong anti-fraud measures and education are critical to protect consumers and ensure financial security.

‘Essential Issues’

“These two issues—preserving CDFI Fund support and establishing smart digital asset regulation—are essential to building an inclusive, stable financial system that meets the needs of our nation’s military families,” Jason Stverak, DCUC chief advocacy officer, said in a statement.  “We urge Congress to act swiftly and thoughtfully.”