WASHINGTON — The Defense Credit Union Council is bracing for a likely Department of Homeland Security shutdown at midnight Friday, warning that Coast Guard members could be forced to work without pay while Congress remains stalled on a funding deal and broader policy fights complicate prospects for a quick resolution.
During a call with the media Tuesday morning, DCUC Chief Advocacy Officer Jason Stverak said that based on latest reports, the White House and congressional Republicans and Democrats do not appear close to an agreement to keep the DHS funded for the full year—or even through a short-term extension.er
If there is a continuing resolution, DCUC understands it would likely cover only three to four weeks, rather than two, in an effort to keep pressure on negotiators. Even so, Stverak said a shutdown remains the most probable outcome.
DCUC’s primary concern is for Coast Guard members, who would stop receiving pay starting Saturday while still being required to report for duty—unlike most other federal employees, but similar to active-duty military personnel.
Congress has had legislative proposals before it for months that could at least protect Coast Guard pay during a shutdown, Stverak noted, but those measures have not advanced. Because only one agency would shut down, he said, there is less public pressure than during governmentwide shutdowns that close national parks and other services. However, potential disruptions affecting TSA and other DHS functions—especially with the Governmental Affairs Conference and spring break travel approaching—could force Congress to act.
If a shutdown does occur, Stverak said DCUC hopes DHS can identify funds—similar to what was done last October for active-duty military—to ensure Coast Guard pay continues.
“DCUC plans to remain in close contact with allies on Capitol Hill and in the Administration to press the message that Coast Guard members and their families should not become political pawns in debates over immigration and border policy,” Stverak said.
Housing Legislation
Stverak said DCUC was pleased to see the bipartisan Housing for the 21st Century Act pass the House overwhelmingly Monday. He called it an example of rare bipartisan legislation that benefits both consumers and credit unions, and said DCUC looks forward to working with both chambers as the bill moves through final negotiations.
He welcomed the deregulatory provisions included in the package—particularly the Credit Union Board Modernization Act and the TAILOR Act—though he said those changes were less significant than the relief offered to banks in the same bill.
Because the housing package may become “must-pass” legislation, Stverak urged Congress to be bolder by including two additional priorities in a final deal: Making the Central Liquidity Facility (CLF) permanent, modeled on prior Senate legislation; and passing the Veterans MBL bill, which DCUC supports in partnership with the American Legion.
He said it is “high time” to set aside politics and allow credit unions to better serve veterans who served the country.
DCUC’s Media Tour
Stverak said DCUC’s recent satellite media tour was an important opportunity to elevate credit unions’ concerns nationally, particularly around interchange and interest-rate caps.
He reiterated DCUC’s strong opposition to a proposed 10% credit card rate cap, warning that it would severely limit access to credit for young service members and lower-income borrowers, leaving only those with top-tier credit able to obtain cards.
He also restated DCUC’s opposition to the Credit Card Competition Act, arguing that while both proposals may “sound good on paper,” in practice they would harm credit unions’ ability to serve marginal and underserved communities.