WASHINGTON–The Defense CU Council has sent a letter to U.S. Treasury Secretary Scott Bessent urging that credit unions—especially those serving military and veteran communities—be included in its 2025 Main Street regulatory reform agenda.

“Defense credit unions are not-for-profit cooperatives rooted in the communities they serve—on and off military bases,” wrote DCUC President/CEO Tony Hernandez. “We share the Treasury’s vision for a more inclusive, opportunity-driven economy, and we urge the Treasury to ensure credit unions are fully empowered to help make that vision a reality.”

The Central Focus

DCUC said a central focus of the letter was its call to modernize or eliminate the “outdated” Member Business Lending (MBL) cap, which currently restricts credit unions from lending more than 12.25% of their assets to small businesses. 

DCUC said the cap significantly limits support for veteran entrepreneurs and local job creation. 

“Veteran-owned small businesses are disappearing, and financing is often the biggest barrier,” added DCUC Chief Advocacy Officer Jason Stverak in a statement.  “Removing or adjusting the MBL cap—especially exempting loans to veteran-owned businesses—would unleash billions in new lending, create up to 140,000 jobs, and cost taxpayers nothing.”

 Other Highlights

DCUC’s letter also highlighted key regulatory challenges the trade group said disproportionately impact credit unions, including:

• Field of Membership restrictions that limit service to underserved communities, including military families.
• Excessive compliance burdens “designed for large banks but imposed on credit unions of smaller scale who continue to devote themselves to their ethos and mission as community-focused financial institutions.”
• Inequitable regulatory treatment compared to banks, particularly in capital requirements.
• Concerns over proposed fee caps, which could unintentionally reduce access to credit and free checking services. 

DCUC concluded its letter requesting to meet with Secretary Bessent and key leadership within the Department.

$100K Contribution to Fund

Separately, a $100,000 contribution has been made to the Defense Credit Union Council’s Defending Credit Unions National Advocacy Fund by seven companies.

The companies—Allied Solutions, Securian, Gallagher, AKUVO, Franklin Madison and Route 66—made a similar $100,000 donation to America’s Credit Unions’ National Advocacy Fund, as the CU Daily reported here https://thecudaily.com/allied-solutions-franklin-madison-other-cos-pledge-100k-to-natl-advocacy-fund/

“We are truly grateful for the generosity and commitment of Allied Solutions and their esteemed partners,” DCUC President/CEO Anthony Hernandez said in a statement. “Their support not only strengthens our efforts to champion credit union advocacy but exemplifies the spirit of cooperation and dedication that drives the defense credit union movement forward.”

‘Valued Partners’

Added Pete Hilger, president/CEO of Allied Solutions, in a statement, “Together, Allied Solutions and these valued partners recognize the vital role defense credit unions play in supporting military and veteran families. We are confident our contribution to DCUC will deliver meaningful solutions and advocacy that drive a lasting impact. We look forward to working together to strengthen the credit union movement and empower the financial well-being of those who serve or have served our country.”

As the CU Daily also recently reported, DCUC and Allied Solutions recently announced their new strategic partnership focused on championing the interests of credit unions serving military and veteran communities. 

Support for House Passage

Separately, DCUC praised passage by the House of a joint resolution to repeal the CFPB’s overdraft rule, “Overdraft Lending: Very Large Financial Institutions.”

DCUC said it has consistently opposed the CFPB overdraft rule since it was first proposed in December 2024, which applies to financial institutions with more than $10 billion in assets. The rule mandates that these institutions either cap most overdraft fees at $5 or classify overdraft programs as credit under the Truth in Lending Act (TILA).

Beyond imposing unnecessary restrictions, DCUC said the rule creates significant compliance challenges for credit unions

‘Grateful’ for Leadership

“We are grateful for Senator Scott’s leadership in protecting consumers, restoring regulatory balance, and preserving access to fair, flexible financial services,” said Hernandez. “DCUC remains steadfast in advocating for the financial well-being of service members, veterans, and their families.”