DCUC Prompt Letter to Treasury, Prioritizing Credit Union Inclusion in Main Street Regulatory Reforms

Anthony Hernandez

​Defense Credit Union Council (DCUC) sent a letter, attached, to U.S. Treasury Secretary Scott Bessent promptly urging the Department to fully include credit unions—especially those serving military and veteran communities—in its 2025 Main Street regulatory reform agenda.
 
In the letter, DCUC President/CEO Anthony Hernandez applauded Secretary Bessent’s stated commitment to shifting financial regulation away from Wall Street and toward empowering community-based financial institutions.
 
“Defense credit unions are not-for-profit cooperatives rooted in the communities they serve—on and off military bases. We share the Treasury’s vision for a more inclusive, opportunity-driven economy, and we urge the Treasury to ensure credit unions are fully empowered to help make that vision a reality,” says Hernandez.
 
A central focus of the letter was DCUC’s call to modernize or eliminate the outdated Member Business Lending (MBL) cap, which currently restricts credit unions from lending more than 12.25% of their assets to small businesses. This cap, which does not apply to banks, significantly limits support for veteran entrepreneurs and local job creation. See DCUC’s recent brief educational video on this necessary reform.
 
“Veteran-owned small businesses are disappearing, and financing is often the biggest barrier,” adds DCUC Chief Advocacy Officer Jason Stverak. “Removing or adjusting the MBL cap—especially exempting loans to veteran-owned businesses—would unleash billions in new lending, create up to 140,000 jobs, and cost taxpayers nothing.”
 
DCUC’s letter also highlighted key regulatory challenges that disproportionately impact credit unions, including:

• Field of Membership restrictions that limit service to underserved communities, including military families.
• Excessive compliance burdens designed for large banks but imposed on credit unions of smaller scale who continue to devote themselves to their ethos and mission as community-focused financial institutions.
• Inequitable regulatory treatment compared to banks, particularly in capital requirements.
• Concerns over proposed fee caps, which could unintentionally reduce access to credit and free checking services.

DCUC emphasized that defense credit unions are mission-driven financial partners, serving more than 40 million members across the globe.
 
DCUC concluded its letter requesting to meet with Secretary Bessent and key leadership within the Department to discuss how credit unions can support the Treasury’s goals for economic growth, inclusion, and prosperity across Main Street America.
 
“We are ready to be a partner in building a stronger economy for everyday Americans—including the veterans and service members who have given so much to this country,” says Hernandez.
 
For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.  

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