The U.S. Armed Forces face enough challenges as they protect and defend the nation’s security. As Congress considers components of the fiscal year 2026 National Defense Authorization Act (NDAA), it’s important that this critical legislation stay focused on provisions that support our military readiness. And provisions related to supporting credit unions and their members deserve consideration as part of that focus.
Credit unions play a big role in ensuring these servicemembers and their families have a trusted partner in their financial well-being.
More than 180 defense credit unions serve military personnel, families and veterans at bases across the country. Half of the members at the nation’s largest credit unions are in uniform. They know their defense communities and members, often personally, and offer financial services tailored to military and veteran lives and needs.
Like all credit unions, those serving military communities reinvest their earnings into giving their members a break on their banking. They offer credit cards with low interest rates, no annual fees, and robust loyalty and rewards programs that help military households stretch their budgets. For military personnel, defense credit unions also fund deployment-relief loans, debt consolidation plans, financial counseling and emergency assistance specifically designed for the challenges of military life.
Lawmakers have offered nearly 2,000 amendments to the NDAA between both chambers of Congress. It’s a tall task to sift through these and determine which to consider and potentially add to the must-pass national defense bill.
That’s why we’re calling on Congress to focus on amendments that will have meaningful impact on the financial stability of our military members, as well as the safety of our nation’s financial system.
Several of the proposed amendments will do just that, including the Veterans Member Business Lending Act. This amendment from Sen. Dan Sullivan (R-Alaska) would enhance credit unions’ ability to support more veteran-owned businesses by excluding veterans’ loans from the arbitrary credit union member business lending cap. Veterans have a strong entrepreneurial spirit, demonstrating grit, determination and leadership in communities across the country. Credit unions stand ready to help even more Americans achieve their dream of owning a business.
There are amendments that would strengthen credit unions’ ability to serve their communities through the Community Development Financial Institutions (CDFI) Fund. A bipartisan package of amendments offered by Sens. Steve Daines (R-Mont.), Mike Rounds (R-S.D.), Mark Warner (D-Va.) and Tina Smith (D-Minn.) would increase CDFI Fund transparency and access to long-term capital and liquidity so CDFI credit unions can better meet the needs of their communities.
Other amendments would enhance the safety of the financial system by enhancing credit unions’ Central Liquidity Facility to give small credit unions easier access to emergency liquidity in times of crisis. They would also tackle affordable housing issues and adjust thresholds for Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs) that haven’t been updated for more than 50 years. These efforts are important to strengthen the resilience of financial institutions, without being overly burdensome.
There are also some issues that lawmakers should stand firm against. One is any attempt to add provisions impacting interchange, such as adding the language of the Credit Card Competition Act, which is nothing more than a Big Box Bailout. This legislation from Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) would throw a wrench into the credit card processing system, even as 88% of consumers believe the current system works well.
Sponsors claim retailers will pass the savings to consumers. That didn’t happen when Congress, claiming the same intention, tampered with the debit card payment system in 2010, a measure also led by Sen. Durbin. Studies show retailers kept the money and consumers saved nothing, while the Federal Reserve found debit card fraud rose 59%. Why should anyone buy the savings claim now?
The Big Box Bailout would raise costs for millions of consumers, including hardworking American workers and our military communities, who depend on the affordable financial services delivered by small community banks and not-for-profit credit unions. For military personnel, it would amount to a hidden reduction in military benefits as the measure would force defense credit unions to cut their low-cost services.
The NDAA is intended to support our troops and national security. As lawmakers consider hundreds of amendments, they must ask themselves, “How will this benefit our servicemembers and strengthen our country?” Credit unions have proven their dedication to supporting our military, revitalizing local economies, and they stand ready to do more.
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