WASHINGTON--As Congress prepares for critical hearings this week with U.S. Treasury Secretary Scott Bessent and USDA Secretary Brooke Rollins, the Defense Credit Union Council has engaged with both the House Committee on Agriculture and the House Committee on Ways and Means to outline key policy recommendations.
In its letter to the House Committee on Agriculture, DCUC noted:
- Outdated Business Lending Limits Hurt Rural Borrowers: The arbitrary 12.25% cap on member business lending (MBL) disproportionately impacts veteran-owned small businesses and rural borrowers. DCUC urged Congress to modernize or exempt certain loans from the cap, and to support the Veterans Member Business Loan Act (VMBLA).
- Field of Membership (FOM) Rules Prevent Access in Underserved Areas: Outmoded FOM restrictions block credit unions from serving nearby rural populations—even when infrastructure and relationships are already in place. DCUC called for charter modernization and more flexible inclusion criteria for rural areas.
- Unequal Treatment Compared to the Farm Credit System (FCS): FCS institutions enjoy tax exemptions and expanded lending authorities unavailable to credit unions, creating an unfair playing field. DCUC asked Congress to reexamine FCS advantages and encourage partnership over competition.
- Proposed USDA Partnerships: DCUC recommended pilot programs and increased access to USDA loan guarantees for credit unions, allowing them to better serve rural communities and small-scale agricultural producers.
“Credit unions are uniquely positioned to serve rural America—especially around military bases that function as economic anchors,” said Jason Stverak, DCUC chief advocacy officer. “But outdated lending caps and unfair competition from Farm Credit institutions are limiting our ability to deliver affordable capital where it’s needed most.”
Ways And Means Commentary
In its comments to House Committee on Ways and Means, DCUC stressed the importance of:
- Preserving the Federal Tax-Exempt Status of Credit Unions: Any erosion of this status would function as a tax on over 45 million credit union members—including active-duty military and veterans. DCUC highlighted that credit unions make up just 6.8% of total financial assets and serve a public mission, not profit motives.
- Fully Funding the CDFI Fund: Many defense credit unions are also Community Development Financial Institutions (CDFIs), relying on the CDFI Fund to offer affordable loans, expand access to capital, and strengthen economic development in military and tribal communities.
- Expanding Military Financial Literacy and Readiness: With over 10,000 financial education events hosted annually on military installations, DCUC urged Treasury to engage more actively with DoD through the Financial Literacy and Education Commission (FLEC) to expand these vital efforts.
“The link between financial readiness and national defense is clear—and defense credit unions are on the frontlines,” said Anthony Hernandez, DCUC president/CEO. “Whether it’s through financial education, small business lending, or tailored deployment tools, defense credit unions are delivering solutions no other financial institutions are providing at scale.”