WASHINGTON–The Defense Credit Union Council has sent a letter to Department of Veterans Affairs (VA) Secretary Doug Collins outlining what it said are its 2026 legislative and regulatory priorities aimed at strengthening the financial well-being of America’s veterans.
It has separately expressed support for the Expanding Access to Lending Options Act.
In the letter, DCUC said it sought to highlight the importance of expanding veterans’ access to affordable, safe, and reliable financial services for veterans living in underserved or remote communities. It also expressed support for the VA’s support for initiatives, such as the Veterans Benefits Banking Program (VBBP) and urged continued collaboration to ensure no veteran is left unbanked or financially isolated.
Tax Status is ‘Critical’
“With more than 30% of U.S. military personnel and veterans relying on credit unions, DCUC stressed that protecting the credit union tax status is critical to maintaining veterans’ financial stability; the historic tax-exempt status of credit unions enables these not-for-profit financial cooperatives to reinvest directly in their member-owners through lower loan rates, reduced fees, and expanded services,” DCUC stated.
Additional Priorities
Additional priorities outlined in the DCUC letter include:
- Opposing unfair “debanking” practices that deny veterans and veteran-owned businesses access to financial services
- Support for bipartisan legislation such as the Veterans Member Business Loan Act (VMBLA) to expand access to capital for veteran entrepreneurs; and improving regulatory coordination to reduce unnecessary burdens that could limit service to veterans.
DCUC said it also highlighted the vital role credit unions play as “first financial responders” during crises, pointing to actions taken during recent government shutdowns when credit unions provided emergency 0% interest loans, fee waivers, and other relief to veterans, servicemembers, and VA employees facing delayed pay.
Request for Meeting
The letter concluded with a request for a meeting with Secretary Collins and senior VA leadership to discuss these priorities and identify opportunities for closer collaboration in 2026, including benefit delivery improvements, financial education outreach, and support for veteran entrepreneurship.
‘Essential’ to Stability
“Access to fair, affordable financial services is essential to veterans’ long-term stability and success after service,” DCUC President/CEO Anthony Hernandez said in a statement. “Credit unions are uniquely positioned to meet veterans where they are, whether in rural communities, banking deserts, or during times of financial hardship. We look forward to continuing working with the VA to support those who have served our nation.”
Support for Additional Legislation
Separately, DCUC expressed its support for a bipartisan bill introduced in the U.S. Senate would give federal credit unions greater flexibility to offer longer-term loans, a move supporters say could lower monthly payments and expand access to credit for consumers, small businesses and military families.
The Expanding Access to Lending Options Act, sponsored by Sens. Kevin Cramer (R-ND) and Catherine Cortez Masto (D-NV), would authorize the National Credit Union Administration to raise the general loan maturity cap for federal credit unions from 15 years to 20 years. The legislation would also allow credit unions to offer 30-year loans on one- to four-unit residential properties, including non-owner-occupied homes.
The bill is a companion to legislation pending in the House.
The Defense Credit Union Council praised the proposal, calling it a long-overdue update to federal lending rules.
“For decades, federal law has capped most credit union loans at 15 years, an outdated restriction that no longer reflects today’s financial realities,” DCUC President and CEO Anthony Hernandez said in a statement.
Reduces Payments
DCUC said extending loan maturities would reduce borrowers’ monthly payments and make financing more affordable for households and businesses. Hernandez said longer terms would also help credit unions better compete with banks, which are not subject to the same limits.
According to DCUC, the legislation would have particular significance for military members and veterans, DCUC said, by allowing credit unions to offer 30-year mortgages on non-primary residences. Under current law, many servicemembers cannot obtain long-term financing through their credit union for a future retirement home if it is not their primary residence.
DCUC urged Congress to advance the measure, saying it would strengthen credit unions’ ability to serve members and support community economic growth.
