As the Chief Advocacy Officer of the Defense Credit Union Council (DCUC), I want to extend my heartfelt gratitude to Senator John Fetterman (D-Pa.) for using his platform to champion credit unions. During an appearance on The View this week, the senator powerfully noted that, amid the recent federal government shutdown, “those [workers] have to borrow more than half a billion dollars from their credit union just to pay the bills”. In an era of heated partisan debates, Senator Fetterman’s focus on real-life impacts – and his recognition of the credit union difference – is both refreshing and deeply appreciated.
When the government shut down, credit unions stepped up. They provided financial lifelines to furloughed federal employees, active-duty service members and others working without pay. The senator’s figure of “half a billion dollars” in emergency credit union loans is not an exaggeration – it reflects the extraordinary support that credit unions mobilized to keep families afloat.
This rapid response was possible because credit unions are rooted in the principle of “people helping people.” They are often the first to create special relief programs during disasters or financial emergencies. We saw it during previous government shutdowns, and we saw it again this fall – credit unions opened their doors to offer no-interest paycheck advances, skip-a-payment options, financial counseling and even community food drives. These efforts weren’t about profit or publicity; they were about neighbors supporting neighbors. Senator Fetterman’s highlighting of these facts on a national stage underscores just how essential credit unions are in preserving Americans’ financial well-being during a crisis.
The numbers tell only part of the story. Behind every dollar of relief is a military family, a federal law enforcement officer, a Coast Guard member, or a civil servant wondering how to pay their mortgage or put food on the table. Credit unions have a mission to support these people. Many defense-oriented credit unions were founded on military bases or in federal workplaces specifically to serve those who serve our country. During the shutdown, these credit unions understood the unique challenges faced by military members and federal employees (some of whom were required to work without pay) and tailored their relief programs accordingly. The impact was not just financial; it was also deeply personal.
Why were credit unions so quick and effective in providing relief? It comes down to their fundamental structure and values. Unlike big banks, credit unions remain member-owned, not-for-profit institutions that prioritize people over profits. This cooperative model means that when members are in trouble, credit unions don’t see an opportunity to charge punitive fees or high interest – they see a responsibility to help. The “people over profits” ethos isn’t just a slogan; it’s baked into how credit unions operate every day. Decisions are made with the members’ best interests at heart, because the members are the owners. Any earnings are returned to those members in the form of lower loan rates, higher savings returns or improved services, rather than paid out to stockholders.
In the case of defense credit unions, this mission is even more pronounced. These institutions serve those who serve our nation – active-duty military, veterans, civilian defense workers and their families. Senator Fetterman’s remarks resonate strongly here: He specifically said he “refuse[s] not to pay our military” and others impacted by the political impasse. Defense credit unions share that sentiment. They play a critical role in supporting military members, veterans and their families, not just during high-profile crises like a shutdown, but every day. During the shutdown, for instance, many defense credit unions immediately activated skip-a-pay programs and zero-interest loans on day one of missed pay, without waiting for Congress or anyone else to act. This proactive, member-first approach is a hallmark of the credit union movement.
Crucially, credit unions do all of this while operating on a not-for-profit basis – yet remaining safe, sound and fully committed to their members’ financial health. They are able to deploy reserves and creativity to help members because that’s their purpose. In contrast, one might recall that large banks in tough times often received taxpayer-funded bailouts or tightened lending, whereas credit unions extended a hand to those in need. It’s no wonder that trust in credit unions remains high. Today, credit unions serve over 140 million Americans nationwide, delivering lower fees, better loan rates and more personalized service than other institutions. They are an essential pillar of community-based finance – one that emphasizes inclusion and financial empowerment over maximizing profits. Senator Fetterman’s public acknowledgment of this model, and his implicit contrast with a “political game” mindset, highlights that credit unions exemplify what financial services should be about: Real people and real communities.
Once again, thank you, Senator Fetterman, for shining a spotlight on the indispensable work of credit unions. At a time when the news cycle often overlooks positive stories, your comments on The View cut through the noise. You reminded millions of viewers that institutions like credit unions are stepping up to fill the gaps and take care of people – not because they have to, but because it’s who they are. Such recognition from elected leaders is gratifying for those of us in the credit union community, but more importantly, it’s a signal to all Americans that they have options and allies in their financial lives.
This moment of recognition is also a call to action for policymakers and community leaders. Credit unions have proven, yet again, their commitment to the financial well-being of working families, federal employees and servicemembers. We urge lawmakers on both sides of the aisle to follow Senator Fetterman’s lead in supporting credit unions and the pro-consumer philosophy they represent. That support can take many forms: Protecting the credit union tax status that allows not-for-profit institutions to return value to members, pushing back against misinformation from big-bank lobbyists, and crafting regulations that recognize the unique cooperative mission of credit unions. I have seen first-hand how misguided policy attacks – such as false claims about credit unions not paying taxes – distract from the real issues, like banking consolidation and predatory lending. Instead, if more leaders embrace the credit union model as part of the solution – just as Senator Fetterman has implicitly done – we can work together to build a more inclusive and resilient financial system. When leaders and local institutions unite in common purpose, Americans are better served – and our nation is stronger for it.
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