WASHINGTON—The Defense Credit Union Council (DCUC) is pressing Congress on multiple legislative and policy fronts, urging lawmakers to advance regulatory reforms for credit unions while strengthening anti-financial crime efforts, preserving the Federal Home Loan Bank (FHLBank) System and protecting military families from the financial consequences of future government shutdowns.
In a series of letters and statements tied to congressional legislation and hearings, the organization argued that credit unions serving military communities require a modern regulatory framework that balances oversight with operational flexibility while ensuring financial readiness for servicemembers and veterans.
DCUC Backs Main Street Capital Access Act
DCUC announced its support for H.R. 6955, the Main Street Capital Access Act, calling the legislation an important step toward modernizing financial regulation for community financial institutions.
In a letter to House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) DCUC urged Congress to approve the bill while following it with separate legislation focused specifically on credit unions.
According to DCUC, the legislation would:
- Improve regulatory tailoring based on an institution’s risk profile and business model.
- Establish clearer and more transparent CAMELS examination standards.
- Improve examination timeliness.
- Strengthen independent review of supervisory determinations.
- Clarify that regulatory guidance is not legally binding.
- Require more frequent reviews of accumulated regulatory burdens.
Among the provisions DCUC highlighted is Section 303, which would allow qualifying, well-managed credit unions with less than $6 billion in assets to receive alternating limited-scope examinations and combine certain regulatory exams, reducing duplication while maintaining safety-and-soundness oversight.
Priorities Identified
DCUC also outlined several priorities it believes should form the basis of future credit union legislation, including:
- Additional support for de novo credit unions.
- Permanent modernization of the Central Liquidity Facility.
- Expanded lending opportunities for veteran-owned small businesses.
- Modernization of fintech partnerships and credit union service organizations.
- More predictable application and merger review timelines.
Jason Stverak, DCUC’s chief advocacy officer, said the bill’s risk-based standards and examination reforms would allow credit unions to devote more resources to serving members while improving supervisory accountability.
Anthony Hernandez, DCUC’s president and CEO, said the nation’s nearly 146 million credit union members deserve a modern legislative framework that recognizes the cooperative structure of member-owned institutions.
Call for FinCEN Modernization
Ahead of a House Financial Services subcommittee hearing on oversight of the Financial Crimes Enforcement Network (FinCEN), DCUC urged lawmakers to modernize anti-money laundering laws and reduce regulatory burdens that it said divert resources from combating financial crime.
The organization said defense credit unions regularly confront increasingly sophisticated fraud schemes targeting servicemembers and veterans, including:
- Money laundering.
- Identity theft.
- Cybercrime.
- Synthetic identity fraud.
- Romance scams.
Recommendations Made
Among DCUC’s recommendations to Congress were:
- Modernize the Bank Secrecy Act using intelligence-driven supervision.
- Expand information sharing among government agencies, law enforcement and financial institutions.
- Encourage responsible use of artificial intelligence to detect fraud.
- Tailor regulatory expectations based on institutional size and risk.
- Increase efforts targeting scams affecting military families.
- Reduce duplicative regulatory requirements.
- Expand public-private partnerships to combat financial crime.
Stverak said fraud affecting military families can disrupt deployments, damage credit histories, affect security clearances and undermine family stability, arguing that financial institutions need a regulatory framework focused on identifying criminal activity rather than complying with outdated requirements.
Hernandez said protecting military families requires collaboration, innovation and regulations that keep pace with evolving threats.
Comments on Federal Home Loan Bank System
DCUC also submitted comments to the House Financial Services Subcommittee on Housing and Insurance supporting efforts to strengthen the Federal Home Loan Bank System.
The organization said dependable access to FHLBank advances remains critical for credit unions serving military communities during deployments, permanent change-of-station moves, natural disasters, government funding disruptions and other periods of economic uncertainty.
Recommendations Sought
Its recommendations included:
- Preserve reliable access to FHLBank advances.
- Modernize mortgage asset programs.
- Improve participation for smaller credit unions through streamlined membership and collateral requirements.
- Protect and expand the Affordable Housing Program.
- Recognize FHLBank advances as stable secured funding.
- Ensure credit unions have a meaningful voice in future FHLBank policy discussions.
DCUC also endorsed several legislative proposals aimed at modernizing mortgage programs, strengthening the System’s capital framework, clarifying membership eligibility and expanding affordable housing investments.
The organization further urged Congress to include credit union representatives in future hearings examining the FHLBank System, noting that credit unions are cooperative owners of the System and collectively serve more than 146 million Americans.
Comments on Government Shutdown Reform
In separate comments submitted to the House Appropriations Committee, DCUC called on Congress to enact bipartisan reforms designed to shield servicemembers, Coast Guard personnel, veterans, federal employees and military families from future government shutdowns.
The organization pointed to previous funding lapses during which defense credit unions provided emergency payroll advances, bridge loans, payment deferrals, fee waivers and financial counseling to military families facing financial uncertainty.
Reforms Sought
Among the reforms DCUC proposed were:
- Passing appropriations bills on time.
- Permanently guaranteeing uninterrupted pay for all uniformed servicemembers, including Coast Guard personnel, during government shutdowns.
- Improving coordination between federal agencies and financial institutions.
- Expanding financial readiness initiatives.
- Recognizing defense credit unions as essential partners during national emergencies.
The organization also encouraged Congress to consider broader appropriations reforms intended to reduce uncertainty and strengthen military readiness while preventing avoidable financial hardships for servicemembers and their families.
Throughout its submissions, DCUC repeatedly argued that “financial readiness is military readiness,” emphasizing that regulatory modernization, improved access to liquidity, stronger fraud prevention and greater certainty in federal funding all contribute to the financial stability of military families and the communities served by defense credit unions.
Calhoun Liberty CU Joins DCUC
Separately, DCUC said Calhoun Liberty Credit Union in Blountstown, Fla., has joined as its newest member.
Founded in 1957 as the Calhoun County Teachers Credit Union, Calhoun Liberty CU was established by a group of local educators dedicated to providing financial services to their fellow teachers. Over the decades, the credit union has grown alongside the communities it serves, expanding its membership eligibility and product offerings while remaining committed to personalized service and community-focused banking.
Today, Calhoun Liberty CU proudly serves more than 10,000 members, manages over $170 million in assets, and operates three branch locations in Blountstown and Bristol, Florida, DCUC stated.
“Joining the Defense Credit Union Council is an exciting opportunity for Calhoun Liberty Credit Union. As a community-focused, member-owned financial cooperative, we are committed to strengthening the financial well-being of those we serve. We look forward to collaborating with fellow credit unions, sharing best practices, and leveraging DCUC’s advocacy and resources to better serve our members and the communities we call home,” CEO Thomas Flowers said I a statement.
Added DCUC’s Hernandez, “We are excited to welcome Calhoun Liberty Credit Union to the DCUC membership. Community-focused credit unions like Calhoun Liberty play a vital role in improving the financial well-being of the people they serve. We look forward to supporting their team through advocacy, education, collaboration, and the resources they need as they continue serving their members and communities.”
