DCUC pushes for financial services package in defense bill.
The credit union trade group wants Congress to use the 2027 defense authorization process to advance three measures affecting liquidity, lending terms and veteran-owned businesses.
The Defense Credit Union Council is pressing congressional leaders to create a dedicated financial services section in the fiscal 2027 National Defense Authorization Act, arguing that the annual defense bill could provide a vehicle for bipartisan changes affecting the financial readiness of military communities.
In a letter to leaders in the House and Senate, DCUC asked lawmakers to establish a path for negotiating a financial services package as Congress works on the broader defense legislation. The group said it hopes that the package will include three priorities: making Central Liquidity Facility enhancements permanent, giving federal credit unions more flexibility over loan maturities and easing a statutory barrier to lending to veteran-owned businesses.
“Financial readiness deserves a place in the broader conversation about national defense,” said Anthony Hernandez, DCUC’s president and chief executive, a retired U.S. Air Force colonel. A financial services section, he said, could strengthen institutions serving military communities while expanding lending options and economic opportunities for veterans.
The Central Liquidity Facility proposal would make permanent enhancements supported by the Padilla-Cramer NCUA Central Liquidity Facility Enhancements Act, S. 3575. DCUC said the changes would help credit unions prepare for liquidity needs before disruptions occur.
The second priority would advance reforms reflected in the Expanding Access to Lending Options Act, H.R. 4167 and S. 3616. DCUC said the legislation would give federal credit unions more flexibility to offer appropriate financing terms while retaining existing expectations around underwriting, risk management and regulatory oversight.
The third is the Veterans Member Business Loan Act, H.R. 507 and S. 110. DCUC wants Congress to remove a statutory barrier for qualifying veteran business loans without creating a new federal program or guaranteeing that a loan would be approved.
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The push comes with DCUC taking care to separate the request from broader disputes over financial policy. The group said it is not asking lawmakers to allow unrelated financial-services controversies to hold up the NDAA. Instead, it wants congressional leaders and the relevant committees to negotiate a separate financial services section.
“Our request starts with creating the legislative opportunity,” said Jason Stverak, DCUC’s chief advocacy officer. The three priorities, he said, address whether credit unions can prepare for disruptions, offer repayment terms suited to borrowers and consider veteran business loans without what the group views as an unnecessary statutory obstacle.
Hernandez said the measures can be pursued without changing the defense focus of the authorization bill.
“Congress does not have to choose between protecting the NDAA’s defense focus and addressing the financial needs of the people who sustain that mission,” he said.
DCUC represents credit unions serving military communities and says those institutions collectively serve more than 145 million credit union members. The organization was founded in 1963 to advocate for credit unions operating on military installations and has since expanded its role in legislative and regulatory policy.
The proposed financial services package remains just that: a proposal. The request calls for congressional leaders to create a negotiating process and does not guarantee that any of the three measures will be included in the final defense authorization legislation.
DCUC said it will continue working with congressional leadership and the committees with jurisdiction as lawmakers consider the request.
“Financial readiness deserves a place in the broader conversation about national defense.”
– Anthony Hernandez
President & CEO
DCUC
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
