WASHINGTON–The Defense Credit Union Council has weighed in with Congress ahead of a number of hearings this week, as well as in response to proposed legislation.

Its input included:

Affordable Housing HFSC Subcommittee Hearing

In a letter to Chairman Davidson and Ranking Member Cleaver, DCUC praised the Subcommittee’s focus on military housing before laying out the urgent reforms it said are needed, including raising lending caps, modernizing the VA home-loan process, updating BAH, expanding federal housing programs, and cutting mortgage-regulation red tape. 

“These targeted fixes would immediately bolster homeownership stability and financial readiness for servicemembers on the move,” the DCUC said.

Among other things, the DCUC urged Congress to:

• Modernize the VA Home Loan program, streamlining appraisals, underwriting, and commission rules to improve market acceptance
• Adjust Basic Allowance for Housing (BAH) to reflect current market rates
• Broaden credit unions’ participation in federal housing programs (FHA, USDA, CDFI, Ginnie Mae)
• Streamline regulatory burdens on credit union mortgage lending to enhance capacity.

Veteran Small-Business Access to Capital (VMBLA)

DCUC called for the Senate Committee on Small Business & Entrepreneurship to support the bipartisan Veterans Member Business Loan Act, which removes the 12.25% cap on credit-union loans to veteran-owned businesses. 

“By unleashing new capital, the VMBLA would fuel Main Street manufacturing, create jobs, and strengthen industrial supply chains,” the DCUC said.

Added Chief Advocacy Officer Jason Stverak, “Veteran entrepreneurs operate 1.76 million businesses employing over 5 million Americans and generating nearly $1 trillion in annual revenue. Despite this, too many still lack access to affordable capital due to arbitrary lending limits. The VMBLA removes that barrier at no cost to taxpayers and allows credit unions to provide additional capital to veterans and fuel job creation on Main Street while strengthening America’s manufacturing base.”

Community Bank + Credit Union Mergers: HFSC Subcommittee Hearing on “Merger Mayhem”

DCUC is calling on the House Financial Services Subcommittee to protect voluntary bank-to-credit-union acquisitions, which it called “critical transactions that preserve branches, sustain local jobs, and prevent “banking deserts” in rural and military communities.

“As financial institutions continue to consolidate, many communities are left with fewer banking options,” wrote Stverak. “Credit unions have increasingly stepped in to maintain local access to financial services—particularly in rural, underserved, and military communities, by acquiring small banks seeking partners aligned with community values.”

Additional Info Shared

DCUC further told Congress mergers are initiated by willing sellers, approved by bank boards, and conducted under full regulatory oversight. Unlike hostile takeovers, these transactions are often the only alternative to branch closures, helping retain local jobs and economic activity.

Stverak further noted that since 2012, less than 0.3% of all banking assets merged have involved credit union acquisitions — a small fraction compared to more than 2,000 bank-to-bank mergers during the same period. In contrast to the 19,301 net bank branch closures from 2012 to 2023, credit unions opened 1,373 new branches — underscoring their growing role in filling service gaps.

DCUC cited recent efforts in Colorado and Tennessee to restrict such transactions, warning these policies only exacerbate banking deserts. 

Where to Get More Info

The Defense Council’s full letters on these issues and other can be found here.