WASHINGTON–The Defense Credit Union Council has sent numerous new letters to the Hill outlining its position on several bills and issues before Congress.
The letters included:
Combatting AI-Enabled Financial Fraud
In a letter to the House Judiciary Subcommittee on Crime and Federal Government Surveillance, DCUC pointed to the rising threat of AI-driven scams and detailed proactive steps defense credit unions are taking to safeguard members.
“Defense credit unions are not waiting for bad actors to strike – we are equipping ourselves with machine learning and real-time alert systems to stop scams as they happen,” Jason Stverak, DCUC chief advocacy officer, wrote.
In the letter, Stverak highlighted several examples of credit unions leveraging AI tools to combat fraud, including:
- Launch Credit Union (Florida): Deployed RembrandtAi to stop check and card fraud, saving over $3.5 million in 2024.
- Affinity Federal Credit Union (NJ/NY): Partnered with Point Predictive to enhance fraud detection during auto loan processing.
- Digital Federal Credit Union (DCU) (Mass): Using SnapLogic and AgentCreator to build an AI-powered fraud infrastructure.
Other Points
In addition to technology, DCUC also highlighted the importance of member education, in-branch scam awareness events, and close partnerships with base commanders and VA offices.
DCUC also reaffirmed its support for legislation such as the TRAPS Act, aimed at improving inter-agency coordination and giving financial institutions tools to freeze suspicious transactions, it said.
Addressing Credit Access in Rural Communities
Ahead of the House Agriculture Subcommittee hearing on rural lending, DCUC provided its comments and advocated for reforms to improve credit access for farmers and ranchers.
In the letter, DCUC urged Congress to:
- Reassess the “outdated” 12.25% Member Business Lending (MBL) cap
- Modernize membership and lending rules for agricultural loans
- Ensure fair competition between credit unions and the federally-backed Farm Credit System (FCS)
“These changes are critical to allow credit unions to better support rural economies and compete on a level playing field,” DCUC wrote.
A Call for Clear and Equitable Digital Asset Regulation
In a letter to the House Ways and Means Subcommittee on Oversight, DCUC said it sought to take a “neutral but pragmatic” stance on digital assets, centered on member protection and regulatory clarity.
“We neither champion nor oppose any specific technology – our priority is safeguarding members and promoting financial readiness,” wrote Stverak.
DCUC’s recommendations included:
- Harmonizing regulations across federal agencies
- Granting NCUA explicit authority to oversee credit union digital asset activities
- Ensuring regulatory parity with banks and fintech firms
- Protecting military consumers from fraud and volatility in crypto markets
DCUC also urged inclusion of credit unions in digital asset advisory groups and regulatory pilot programs.
Passage of VA Home Loan Program Reform Act Commended
The Defense Credit Union Council (DCUC) is applauding the bipartisan passage of H.R. 1815, the VA Home Loan Program Reform Act, which it said will significantly strengthen protections for veterans facing mortgage hardship.
“This legislation will enhance the VA Home Loan Program by establishing a permanent partial claims program and improving loss mitigation options for veterans struggling with mortgage payments,” DCUC said.
The trade group noted he bill also ensures that veterans have access to the same foreclosure-prevention tools available through other federal housing programs.
‘Crucial Step’
“This is a crucial step forward in protecting the financial well-being of those who have served our country,” Anthony Hernandez, DCUC president/CEO, said in a statement. “We commend lawmakers on both sides of the aisle for recognizing the urgent need to modernize the VA Home Loan Program. These reforms will help prevent unnecessary foreclosures, provide a safety net during financial hardship, and uphold our nation’s promise to support our veterans.”
Key Provisions
Key provisions of the bill include:
- A five-year partial claims program to help veterans catch up on delinquent mortgage payments
- Enhanced loss mitigation tools and VA authority to work with lenders to avoid foreclosure
- Permanent authorization allowing veterans to compensate real estate agents directly
- Additional funding for homeless veterans through the VA Grant and Per Diem Program
Support for Digital Assets Framework
The Defense Council said it proudly supports congressional efforts to establish a clear and modern framework for digital assets and innovation within the U.S. financial system.
With recent votes on key legislation – including the GENIUS Act, H.R. 1919 – Anti-CBDC Surveillance State Act, and H.R. 3633 – Digital Asset Market Clarity Act of 2025, DCUC said Congress is taking critical steps to ensure the digital economy is structured, secure, and positioned for long-term success.
It noted the measures aim to provide regulatory clarity, protect consumer privacy, and support responsible innovation in emerging financial technologies, while promoting U.S. leadership in the global digital asset space.
“DCUC commends Congress for its forward-looking leadership in structuring a safe and fair digital asset ecosystem,” said Hernandez. “By advancing the GENIUS Act and key digital-asset framework, lawmakers are prioritizing both innovation and security, ensuring credit unions and financial institutions can operate with confidence and clarity in a rapidly evolving digital landscape. This is an essential step in strengthening the U.S. economy and protecting consumers — including our military and veteran communities.”
What’s Included
DCUC noted the legislation includes:
- The GENIUS Act, which promotes innovation and U.S. competitiveness in emerging financial technologies
- H.R. 1919, which ensures privacy safeguards related to any potential Central Bank Digital Currency (CBDC)
- H.R. 3633, which provides long-needed regulatory clarity for digital asset markets and participants