WASHINGTON—The Defense Credit Union Council (DCUC) is urging lawmakers in separate letters tied to two congressional hearings to address Coast Guard pay protections and to ensure bank capital reforms do not disadvantage credit unions or limit access to lending.
Ahead of a House Committee on Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation hearing on the U.S. Coast Guard’s fiscal 2027 budget request, DCUC called for full-year, uninterrupted appropriations and permanent statutory protections to guarantee servicemember pay during government funding lapses.
“Coast Guard servicemembers should never have to question whether they will be paid while continuing to execute critical national security missions,” DCUC President and CEO Anthony Hernandez said in a statement. Hernandez said Congress has the authority and responsibility to fix what he described as a structural gap, adding that financial uncertainty can undermine readiness, morale and operational effectiveness.
Support for Parity Act
DCUC said it supports legislative proposals such as the Pay Our Coast Guard Parity Act and broader servicemember pay protections, noting Coast Guard personnel should receive the same financial certainty as Department of Defense counterparts.
“While DCUC member credit unions stand ready to support servicemembers during times of financial stress, emergency assistance should never substitute for the federal government meeting its basic obligation to pay those in uniform,” Chief Advocacy Officer Jason Stverak said.
In a separate letter to leaders of the House Financial Services Committee ahead of a hearing on capital requirements and economic growth, DCUC urged lawmakers to base any recalibration of bank capital rules on rigorous analysis and to avoid unintended competitive disparities for credit unions.
DCUC said it supports a regulatory framework that is strong, risk-sensitive and transparent, while warning that broad policy shifts could disrupt access to traditional Main Street lending. The group also highlighted differing regulatory views on how recent proposals could affect financial system resilience.
Key Recommendations
Key recommendations outlined by DCUC include:
- Requiring a joint cumulative-impact analysis from federal banking agencies before finalizing capital rule changes, including effects on mortgage lending, small business credit and market competition.
- Preserving risk-sensitive treatment of traditional lending activities to maintain access to credit for military families, first-time homebuyers and veteran-owned businesses.
- Avoiding mechanical adjustments to global systemically important bank (G-SIB) surcharges based on economic growth factors rather than systemic risk.
- Conducting an interagency parity review to assess how bank capital changes may affect credit unions operating under a separate statutory framework.
Hernandez said policymakers must ensure changes to capital requirements are “driven by data and not arbitrary recalibration,” warning that insufficient analysis could reduce access to affordable credit for households and small businesses.
Stverak added that credit unions’ mission-driven model requires consideration in any broader capital framework changes to avoid disadvantaging institutions serving servicemembers, veterans and local communities.
