By Jason Stverak
Affordability is the defining kitchen-table issue of the moment. Families are paying more for housing, groceries, and transportation—and many are carrying revolving balances at interest rates that feel punishing. It’s no surprise that calls for a one-year, 10% cap on credit card interest are gaining traction on Capitol Hill.
But as someone representing defense credit unions serving military families and national-security communities, I’ll be candid: a blanket 10% cap is the kind of simple answer that can create a deeper problem. It would shrink access to responsible, regulated credit for the very people we most want to protect, young servicemembers, junior enlisted families, reservists, and veterans rebuilding their financial footing.
Start Here
Start with an underappreciated fact: federal credit unions already operate under a strict statutory ceiling, 15% per year on member loans, set by Congress. Congress also authorized the NCUA to raise that ceiling temporarily, for limited periods, when market conditions warrant and safety-and-soundness criteria are met. Earlier this month, NCUA exercised that authority again, extending the temporary ceiling at 18% through Sept. 10, 2027.
That matters because “affordable” credit must also be available credit. If policymakers mandate a rate that falls below the cost of extending many types of unsecured credit—funding costs, servicing costs, and expected losses—lenders don’t keep lending at a loss. They deny more applicants, cut credit lines, or exit products altogether. Consumers can end up worse off, pushed toward less transparent, higher-cost alternatives.
Not Theoretical
For defense communities, this isn’t theoretical. It’s the E-4 who during PCSs, breaks a transmission, and needs a short-term bridge before reporting to a new unit. It’s the military spouse facing a gap between a move and a first paycheck. It’s the young veteran with a thinner credit file trying to stabilize cash flow while starting a civilian job. For these members, mainstream credit is a readiness and resilience tool, not a luxury.
Defense credit unions are built to meet those moments, and we do it at scale. DCUC member institutions serve more than 40 million military, veteran, and military-family members worldwide. During shutdown disruptions, credit unions acted as first financial responders—providing emergency 0% interest loans, skip-a-payment options, and fee waivers to keep pay-delayed families stable. And on many installations, the credit union is the only on-site financial institution, delivering essential services at no cost to the government, within a Pentagon framework designed to ensure servicemembers can choose both a bank and a credit union option on base.
National Security Dimension
Affordability also has a national-security dimension. Federal adjudicative standards explicitly recognize that serious financial distress can raise questions about reliability and increase vulnerability to coercion. When well-intentioned policy reduces access to responsible, regulated credit—especially in emergencies—we don’t just squeeze household budgets; we risk undermining readiness and resilience.
Supporters of a 10% cap argue it would save consumers money and curb abuses. Those goals matter. But the blunt-instrument approach ignores that strong, targeted protections already exist, especially for the military community. The Military Lending Act restricts the Military Annual Percentage Rate for covered borrowers to 36% and requires additional safeguards.
The Servicemembers Civil Relief Act caps many pre-service obligations at 6% during military service (and longer for certain mortgages), with excess interest forgiven. Defense-focused credit unions support these protections and work every day to pair responsible credit with counseling and education, not to mention the member-owned structure that returns value to people instead of shareholders.
Better Tools
If Congress wants durable affordability, there are better tools than price controls. Credit unions serve more than 140 million members nationwide. DCUC’s 2026 priorities focus on practical affordability and access: protect the credit union tax status so member value can keep flowing through better rates and lower fees; preserve equitable access for credit unions on bases; strengthen partnerships for financial readiness education; reduce regulatory frictions that can delay assistance under servicemember-protection rules; and support veteran entrepreneurship and housing pathways that strengthen long-term economic stability.
Finally, policymakers should be cautious about stacking multiple government interventions on the same communities. A broad coalition including DCUC and AMBA recently warned Congress that the Durbin–Marshall credit card mandate would “harm consumers…by reducing choice, increasing costs and fraud risks,” while primarily benefiting the biggest retailers. Different proposal, same lesson: affordability is not achieved by making responsible credit harder to provide.
An Agenda That Works
America needs an affordability agenda that works in the real world. A 10% credit card cap may sound like relief, but for millions—including those who serve—it would likely mean fewer approvals, smaller lines, and fewer responsible options. Let’s focus on reforms that expand access, strengthen protections, and empower mission-driven institutions to keep serving the people who keep our country safe.
Jason Stverak is chief advocacy officer with the Defense Credit Union Council
