WASHINGTON--This week, the Defense Credit Union Council addressed several key policy issues impacting credit unions and the communities they serve.
In a letter to recommendations to the House Financial Services Subcommittee on Financial Institutions, DCUC voiced that access to credit depends on a system that is accurate, timely, and trusted, and allowing lenders to responsibly manage risk. Inaccurate or compromised credit data can directly impact housing, transportation, and financial stability, particularly given higher exposure to identity theft and frequent relocations.
“Accurate credit reporting is the foundation of fair and meaningful access to credit—especially for servicemembers and veterans,” wrote Jason Stverak, DCUC chief advocacy officer.
DCUC outlined four key principles for policymakers:
- Strengthen accuracy and accountability across credit reporting systems, including resellers
- Expand responsible credit-building opportunities, such as incorporating on-time rent and utility payments with safeguards
- Improve integrity of consumer complaint data to ensure policymaking reflects real harms
- Balance liability frameworks to maintain strong consumer protections without limiting credit availability
DCUC cautioned that broader policies such as rigid federal interest rate caps could reduce responsible lending options, particularly for younger servicemembers or those rebuilding credit.
“Policies that promote data integrity, responsible innovation, and risk-based lending are essential to ensuring military families can access safe, affordable financial services,” Stverak said. See DCUC's full comments here.
DCUC also sent a letter to Senate Budget Committee leadership ahead of the hearing, “The President’s Fiscal Year 2027 Budget Request,” outlining key priorities for financial readiness and warning that budget decisions will directly impact access to affordable credit for vulnerable communities across America, particularly during periods of financial disruption.
Two urgent concerns DCUC highlighted included:
- Protecting credit unions’ federal tax status from being used as a budget or reconciliation “pay-for,” emphasizing their not-for-profit, member-owned structure and role serving over 140 million Americans
- Opposing proposed cuts and restructuring of the Treasury’s CDFI Fund, which would reduce support for small-dollar lending, financial inclusion, and community investment in military-adjacent areas
DCUC warned against “backdoor” efforts to erode tax status through duplicative compliance mandates, such as imposing additional IRS reporting requirements that could divert resources away from member services.
“Reducing proven tools like the CDFI Fund or adding unnecessary compliance burdens ultimately limits access to safe, affordable credit where it’s needed most.”
DCUC called on lawmakers to:
- Publicly and procedurally reject any use of credit union tax status changes as a budget or reconciliation offset in FY2027 work, consistent with DCUC’s March 26, 2026 request
- Oppose any reconciliation-time amendments or manager’s packages that would repeal or narrow the exemption, impose size-based taxation, or advance “backdoor” tax-status erosion through duplicative compliance mandates
- Use the April 16 hearing to obtain clear testimony from the OMB Director on whether the FY2027 budget request assumes any changes to credit union taxation or reporting mandates, and to highlight Treasury’s own caution against static tax-expenditure interpretations
- Reject the proposed CDFI Fund cut and restructuring and urge appropriators to maintain robust funding that preserves the full suite of CDFI Fund programs (including tools that support small-dollar lending and community investment capacity)