By Jason Stverak
As Congress turns its attention to the National Defense Authorization Act (NDAA), the most important annual bill for America’s national security, there’s one message that must ring clear: stay laser-focused on the mission. Because no one knows that mission—or has fought longer and harder to protect it—than the Defense Credit Union Council, DCUC, and America’s defense credit unions.
For more than six decades, DCUC has stood as the unwavering voice of financial readiness for the military community. DCUC and its member credit unions don’t just talk about serving servicemembers—we live it, every day. Defense credit unions operate on or near over 300 military installations worldwide, serving more than 40 million members—from active-duty servicemembers to veterans, DoD civilians, and military families.
In short: others may imitate, but no one can duplicate what DCUC delivers. When it comes to safeguarding military financial wellbeing through the NDAA, we are not newcomers. We are the experts.
The Stakes Of The NDAA: Readiness, Not Retail Windfalls
The NDAA isn’t just about weapons systems and military pay, it’s about the entire ecosystem that keeps our military ready, including financial readiness. This critical aspect directly impacts morale, mission effectiveness, and family stability. Yet every year, we witness attempts to hijack this vital legislation with unrelated special interest agendas.
Take, for example, the Credit Card Competition Act (CCCA). Pitched by big-box retailers and supported by Senators Durbin and Marshall, this legislation would impose government-mandated credit card routing rules that devastate small financial institutions—especially credit unions.
At first glance, it sounds like “competition.” In reality, it’s a handout to big merchants that would gut the interchange revenue that defense credit unions use to fund fraud protection, military-specific rewards programs, scholarship funds, and critical cyber infrastructure. Ultimately, military families bear the cost.
This isn’t competition—it’s a corporate giveaway disguised as policy. If passed, CCCA would:
- Undermine zero-liability protections for military cardholders
- Slash travel and PCS-related card benefits used by service families
- Defund scholarship programs, financial education, and base-level services that credit unions uniquely provide
The NDAA should not be used to rubber-stamp corporate wish lists. We urge Congress to reject any attempt to sneak CCCA into this must-pass legislation.
Why Interest Rate Caps Like Hawley-Sanders Threaten Military Access To Credit
Another threat comes from a well-intended but deeply flawed idea: the Hawley-Sanders bill to cap interest rates at 10%. At face value, it may sound like consumer protection. But in practice, it would cut off credit access for the very people it claims to protect.
Defense credit unions already operate under an 18% cap as mandated by the Federal Credit Union Act. That’s a hard cap that balances safety with flexibility and still enables us to offer emergency loans, credit cards, and auto loans tailored to military life. A blanket 10% cap would make it impossible to serve many members—especially those with thin or challenged credit.
Worse, it would drive service members to unregulated and predatory lenders—the very problem the Military Lending Act sought to eliminate. Congress has wisely regulated payday lenders in the past. Now it risks sending our military right back into their clutches by eliminating safe, mission-aligned alternatives.
There’s a crucial difference between a profit-driven payday lender and a not-for-profit, member-owned credit union. Lawmakers must recognize and respect that distinction.
Credit Unions Empower Military Resilience—Not Wall Street
Unlike megabanks, defense credit unions are not-for-profit cooperatives. We don’t have shareholders, we have members. Every dollar in earnings is reinvested to benefit them, not pad executive bonuses.
That means:
- Lower loan rates on car loans, personal loans, and mortgages
- Waived fees for deployed servicemembers and families
- Financial literacy workshops for new recruits
- Scholarships for military children
- Community investment in base infrastructure and MWR programs
- Provide expeditionary cash for military operations and servicemembers deployed around the globe to protect America’s interests
In 2024 alone, credit unions returned more than $22 billion in direct financial benefits to members nationwide. For military families, that’s not theory—it’s their real-world budget. It’s the difference between affording a car, covering a PCS (Permanent-Change of-Station) move, or keeping up with surprise expenses between paychecks.
That is what financial readiness looks like in action. And it is largely made possible because credit unions remain exempt from federal income tax—a historic recognition of our financial cooperative structure. Preserving our federal tax-exempt status isn’t a handout—it’s a multiplier mission that allows us to do more for less.
Deployable, Expeditionary Cash: Mission Support & Success
Deployable funds are essential to military readiness—without them, missions stall before they start. That’s why DCUC works tirelessly to ensure legislation like the NDAA supports, rather than obstructs, the operational needs of our armed forces.
“DCUC brings a unique perspective shaped by decades of close collaboration with the Department of Defense, a deep understanding of how military logistics intersect with financial services, and a long history of advocating for America’s credit unions serving these populations,” says Anthony Hernandez, DCUC president/CEO, and retired Air Force Colonel, a former Chief Financial Officer for the Air Mobility Command.
“I remember during a simulation operation, several commands were ready to take off, but our expeditionary cash wasn’t in place to support the tasking. As the finance commander, I said, ‘We’re exposed to enemy fire on the airfield right now—we’re open to attack. Maintenance crews are out here in the heat without water.’ Sometimes speaking the truth means you may be eating lunch alone...but we got what we needed, passed our inspection, and I was later elevated to director of staff. It wasn’t fun, but sometimes you have to stand up and say the hard thing to make sure the mission doesn’t fail. I’ve had to do that throughout my career—even now at DCUC—because it matters. That kind of real-world experience is exactly what we bring to the table when we fight to protect critical legislation like the NDAA. We understand that access to deployable funds can make or break operational success—and that’s why we don’t just advocate, we lead for all credit unions, especially on matters like this.”
While the world sees uniforms and deployment orders, defense credit unions see the behind-the-scenes reality: servicemembers in remote environments often need immediate, secure access to cash. Credit unions provide that support without delay—whether in Europe, the Indo-Pacific, or the Middle East. Our armed forces cannot deploy without the expeditionary cash from credit unions for what is needed on the ground to ensure the readiness and success of military missions.
We deploy financial services with our members. Through overseas branches, forward-operating agreements, and coordination with U.S. military commands, defense credit unions ensure that deployed service members can access emergency cash, wire funds to family back home, or get fast loans if something goes wrong on the other side of the globe.
This is readiness in action. Try finding that from a for-profit fintech app or a retailer’s payment network.
A Personal Reminder From The Vice President
Even at the highest levels of government, the impact of defense credit unions is deeply personal. Vice President JD Vance recently shared how a simple but critical decision—financing a car through Navy Federal Credit Union—helped him build credit, improve his financial standing, and start a better path forward.
That’s not just a good customer experience. That’s a powerful story of financial empowerment made possible by the not-for-profit mission and military focus of defense credit unions. The lesson is clear: when service members, veterans, and their families have access to trustworthy financial institutions, their futures are stronger.
We don’t just lend money—we lend confidence, stability, and opportunity.
A Trusted Partner—Not A Passing Fancy
Credit unions trust DCUC because we bring more than just expertise—we bring lived military insight, decades of unmatched representation, and an unwavering presence in this fight every single day. We’re not here for politics or convenience. We stand firm because our mission has been built over 60 years of consistent service, relentless advocacy, and a deep, enduring commitment to those who serve.
This is not a passing fancy. It is our full-time purpose.
We are at every NDAA markup, bring our voice to critical DoD working groups, and every credit union strategy meeting that touches military service. No organization dedicates more time and effort to listening to military communities and the credit unions serving them, turning their concerns into concrete solutions than DCUC.
Our message to defense credit unions is simple: you are not alone. We are fighting for you because you are fighting for America’s military.
Empowering Veterans, Not Limiting Their Options
We strongly support the Veterans Member Business Loan Act (VMBLA)—a commonsense fix that would allow credit unions to make more loans to veteran-owned small businesses by exempting them from the arbitrary 12.25% MBL cap. Veterans have the leadership and discipline to succeed as entrepreneurs. They deserve the capital to match.
We also support the Military Financial Services Protection Act, introduced by Rep. French Hill, which would establish a DoD advisory committee including on-base credit unions. For too long, critical financial decisions have been made without those who are actually on the ground serving our military. This bill fixes that.
And we urge swift passage of the VA Home Loan Awareness Act, led by Senators Tim Sheehy and Chris Van Hollen. One-third of eligible veterans aren’t aware of their VA loan benefit. That’s unacceptable. A simple disclosure requirement on mortgage forms would close that gap and empower more veterans to buy homes.
Authorize State-Chartered Credit Unions to Accept Public Funds
Finally, let’s talk about a fix with zero budget score and massive impact: allowing state-chartered credit unions to accept public funds. Right now, many such institutions are prohibited from accepting deposits from city or county governments—even when they operate near military bases and are ready to serve.
Changing this policy would boost local liquidity, support installation-area economies, and expand options for government accounts. It’s a no-brainer, and it belongs in the NDAA.
We’ve Earned The Right To Be Heard—Now Let Us Serve!
At DCUC, we don’t just speak for defense credit unions and their military communities—we are part of this historic movement. Together, we’ve deployed with these Americans. We’ve answered their calls. We’ve helped families rebuild, buy their first homes or refinance loans, helped veterans launch small businesses that hire other veterans, and more.
We don’t measure success in profit. We measure it in mission impact and readiness. We don’t seek attention—we seek results! And while others may show up when it’s convenient, we’ve been here for over 60 years and we’re not going anywhere.
The NDAA is too important to be derailed by special interests or short-sighted policies. Keep the focus where it belongs—on those who wear the uniform and the institutions that continue to have their backs.
Let’s get the NDAA right—for the military, for their families, and for the credit unions that serve them.
Jason Stverak is Chief Advocacy Officer at the Defense Credit Union Council.