WASHINGTON— With National Guard troops mobilized to patrol the streets of the nation’s capital, credit unions—particularly those serving military communities—are being reminded of their vital role in supporting service members and their families during uncertain times.
This weekend, Sen. Richard Blumenthal (D-CT) warned that National Guard personnel deployed to Washington may face delays in receiving their active-duty pay due to paperwork and assignment processing. Such holdups could impact roughly 800 Guardsmen and their families, raising worries about day-to-day expenses and financial stability.
Anthony Hernandez, president and CEO of the Defense Credit Union Council, said credit unions cannot afford to wait on the sidelines.
“If there are concerns about Guardsmen getting paid on time, credit unions—whether defense-focused or not—have an opportunity and responsibility to step in,” Hernandez told CUToday.info.
Tools Already in Place
Hernandez noted that the Servicemembers Civil Relief Act (SCRA) automatically provides protections for Guard troops on active-duty orders, including capping loan interest rates at 6%. But he emphasized that credit unions must proactively identify affected members and adjust loan terms.
“Awareness is the first step,” he said. “Credit unions need to know who among their members has been called up, so they can act quickly to honor SCRA protections and ease immediate financial pressures.”
Beyond statutory obligations, Hernandez pointed to a range of voluntary programs that credit unions can offer to Guard troops and their families:
- Skip-a-pay options for loan obligations
- Loan consolidations tailored to those with secure federal pay streams
- Emergency cash flow programs, such as guaranteed pay advances
“These measures can make the difference between a Guardsman worrying about a missed mortgage payment and focusing on the mission at hand,” Hernandez said.
Readiness Beyond Today
Hernandez also urged credit unions to treat this moment as a broader readiness exercise. With the federal government’s fiscal year ending Sept. 30, he warned of the possibility of a government shutdown that could once again disrupt paychecks for active-duty military and civilian personnel.
“Credit unions should be preparing now—just as they always have in past shutdowns—to offer continuity programs, payment relief, and financial counseling,” he said. “We’ve seen this before, and members will look to their credit union first.”
DCUC’s Role
The Defense Credit Union Council, which represents more than 200 defense credit unions worldwide, has mobilized to help its members support deployed Guardsmen. The group is providing guidance on best practices, compliance reminders, and peer-to-peer sharing of emergency relief strategies.
“Whether it’s a Guardsman serving here in D.C. or an active-duty member deployed overseas, credit unions are often the first line of financial support,” Hernandez said. “Moments like this remind us that service to members is more than a slogan—it’s a lifeline.”