WASHINGTON—The Defense Credit Union Council said it cannot support legislation that would triple federal deposit insurance coverage to $750,000 from $250,000 unless Congress explicitly guarantees that credit union members receive the same protection as bank customers.
In a letter to Rep. Josh Gottheimer (D-NJ), DCUC expressed support for the objective of H.R. 10821 but warned that the legislation, as introduced, does not expressly provide equivalent coverage through the National Credit Union Share Insurance Fund (NCUSIF).
The bill would increase the Federal Deposit Insurance Corp.’s standard insurance limit to $750,000 and establish annual inflation adjustments. However, according to DCUC, the legislation leaves the separately stated credit union insurance limit unchanged while rewriting the statutory framework governing future adjustments.
Although existing federal law links credit union share insurance to FDIC adjustments, DCUC said the language does not necessarily guarantee that every increase in FDIC coverage would automatically apply to federally insured credit unions.
“DCUC supports stronger protection for the families and communities our credit unions serve,” said Anthony Hernandez, DCUC president and CEO. “Servicemembers and veterans deserve to know their savings receive equal federal protection whether they choose a bank or a credit union. Congress can provide that certainty by including the NCUSIF expressly.”
Four Changes Requested
According to DCUC, its letter calls for four specific changes to the legislation:
- Equal initial coverage: Explicitly establish the same $750,000 insurance standard for both FDIC-insured deposits and NCUSIF-insured credit union shares.
- Future parity: Require matching future inflation adjustments, participation by the National Credit Union Administration and simultaneous effective dates.
- Conforming amendments: Make corresponding changes for comparable account categories and correct statutory references to ensure consistent treatment.
- Implementation review: Include the NCUSIF in the legislation’s study of funding, capitalization, premiums and implementation.
DCUC said merely naming the NCUA as a participant in a study would not resolve the underlying concern about whether credit union members would receive the higher insurance coverage.
Instead, the organization is proposing an operative statutory provision explicitly tying the NCUSIF insurance standard to the FDIC standard, including future adjustments.
“The statutory link is real, but it is too broad to say every FDIC increase automatically changes the NCUSIF limit,” said Jason Stverak, DCUC chief advocacy officer. “A clear conforming amendment would give members and credit unions the certainty they need. We support the goal of higher protection and want to work with Representative Gottheimer to secure it equally.”
Builds on Earlier Advocacy
DCUC said its position on H.R. 10821 is consistent with earlier advocacy efforts supporting expanded federal deposit and share insurance protections.
Those efforts include:
- July 2025: Support for H.R. 4551, which addressed expanded insurance protections.
- September 2025: Comments submitted in connection with a Senate Banking Committee hearing.
- October 2025: A letter to Sens. Bill Hagerty, R-Tenn., and Angela Alsobrooks, D-Md., addressing insurance reform.
According to DCUC, those earlier efforts emphasized expanded protection for business accounts, equal treatment of credit unions and banks, and responsible implementation of insurance reforms.
The organization stressed that its support for those proposals should not be interpreted as an endorsement of H.R. 10821.
Opposition to Continue Without Changes
DCUC said it will maintain its opposition to the legislation as introduced until Congress includes explicit language ensuring equal insurance protection for credit union members.
At the same time, the organization said it remains willing to work with Gottheimer and other lawmakers to advance broader federal insurance reform.
The organization emphasized that the legislation has not been enacted and that any changes in federal insurance coverage would take effect only after the bill becomes law and reaches its applicable effective date.
DCUC said its primary objective is to ensure that consumers, including military personnel, veterans and their families, do not face different levels of federal insurance protection based solely on whether they choose to keep their money at a bank or a credit union.
