The Defense Credit Union Council (DCUC) continues to strongly oppose the expansion of the Community Reinvestment Act (CRA) to credit unions—a move that threatens to undermine the unique structure and mission of credit unions, particularly those serving our nation’s military and veteran communities.
CRA Was Never Intended for Credit Unions
Originally enacted in 1977, the CRA was designed to address discriminatory practices in the banking sector and to ensure that banks meet the credit needs of the communities in which they operate. But credit unions are fundamentally different. As not-for-profit financial cooperatives, credit unions are mission-driven and member-focused, not profit-seeking. They exist to serve their members, many of whom represent underserved populations, without the need for a legislative mandate.
Applying the CRA to credit unions imposes a regulatory framework designed for a different kind of financial institution, creating unnecessary burdens without delivering meaningful benefits to the communities credit unions already serve.
Negative Impacts on Military and Veteran Communities
Defense credit unions are a critical financial resource for military families across the country and around the world. These institutions go where many banks won’t—on military installations, in rural areas, and in underserved regions—to provide essential financial services, education, and support.
Imposing CRA requirements on these mission-aligned institutions would create additional regulatory hurdles, diverting resources away from service-oriented programs and potentially limiting access in the very communities that rely on them most. Rather than increasing access to financial services, CRA expansion could do the opposite, particularly for active-duty service members, veterans, and their families.
Credit Unions Are Already Delivering on the CRA’s Goals
Credit unions have long fulfilled the spirit of the CRA through their existing mission and practices. Their cooperative structure, dedication to member service, and focus on community impact ensure they are already addressing financial inclusion and access without additional regulation.
As DCUC President and CEO Anthony Hernandez has stated, “Credit unions are built on the idea of people helping people. The CRA is unnecessary for institutions that already serve by design. We should be looking for ways to strengthen their ability to serve, not hinder it.”
Sustained Advocacy and Ongoing Engagement
DCUC has consistently voiced its opposition to CRA expansion through direct engagement with the National Credit Union Administration (NCUA), legislative outreach, and continuous education of policymakers. In formal comments submitted to the NCUA, DCUC emphasized that expanding CRA to credit unions would not meaningfully improve access to credit in underserved communities and instead risks curbing the very services that set credit unions apart.
DCUC remains actively involved in defending the credit union difference and protecting the ability of military-serving credit unions to fulfill their mission without being encumbered by unnecessary regulations.
Support the Mission. Stay Informed.
DCUC will continue to advocate for policies that support—not obstruct—credit unions’ ability to serve their members. Preserving the operational flexibility and mission-first focus of defense credit unions is critical to ensuring continued access to high-quality financial services for military communities.
For more information, contact DCUC Chief Advocacy Officer Jason Stverak at jstverak@dcuc.org.
