DCUC Calls For Congressional Action: Preserve CDFI Funding And Ensure Uninterrupted Pay For Coast Guard
By CU Today Staff —
WASHINGTON--The Defense Credit Union Council is advancing two major advocacy priorities this week focused on financial readiness for military communities and underserved populations.
In a letter submitted for the record ahead of the House Committee on Homeland Security's hearing, "A Review of the Fiscal Year 2027 Budget Request for DHS," DCUC called for support of a permanent funding mechanism that ensures Coast Guard personnel receive uninterrupted pay during any future lapse in Department of Homeland Security (DHS) appropriations.
“Coast Guard members and their families deserve the same financial certainty that supports readiness across the military community," said Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. "When servicemembers are asked to continue their mission during funding disruptions, they should not also have to worry about meeting basic household expenses. Defense credit unions are proud to support military families when challenges arise, but the strongest solution is one that provides stability and peace of mind from the start. Ensuring uninterrupted pay for Coast Guard personnel helps strengthen both military and family readiness, morale, and support."]
DCUC’s Chief Advocacy Officer, Jason Stverak, detailed how defense credit unions mobilized nationwide to provide emergency assistance, including no-interest loans, payroll advances, payment relief, financial counseling, and community support programs designed to help families weather missed paychecks.
“These were not abstract budget events; they imposed real hardship on Coast Guard families and the broader DHS workforce…,” Stverak said. “On October 10, 2025, DCUC published a national roundup of member-credit-union relief efforts…These programs were practical lifelines for families trying to buy groceries, keep current on bills, and avoid long-term credit damage.”
Letter To Senate Finance Committee
Separately, DCUC wrote to the Senate Finance Committee ahead of its hearing with Treasury Secretary Scott Bessent, urging lawmakers to reject the Administration's proposed reduction and restructuring of the Community Development Financial Institutions (CDFI) Fund and instead preserve the Fund's full statutory program portfolio at no less than the current enacted level of $324 million.
In its letter, DCUC shared how mission-driven credit unions rely on CDFI resources to provide emergency small-dollar loans, financial counseling, affordable housing support, small-business financing, and community investment in underserved and military-connected communities.
DCUC warned that the Administration's FY 2027 proposal would reduce newly appropriated CDFI resources from $324 million to $119.5 million—a 63.1% reduction, while eliminating funding for several longstanding programs, including the CDFI Program, Native American CDFI Assistance Program, Bank Enterprise Award Program, Healthy Food Financing Initiative, Small Dollar Loan Program, and Economic Mobility Corps.
“CDFI credit unions are often the institutions stepping in where traditional financial services have stepped away, providing affordable credit, financial counseling, support for veteran-owned businesses, and investments that strengthen local economies,” added Stverak. “Congress should reject this proposal and preserve the full statutory mission and funding of the CDFI Fund."
Specific recommendations from DCUC’s letter to the Committee leaders included:
"Funding alone is not enough. Treasury must also ensure that CDFI resources reach communities efficiently and predictably," said Hernandez. "Delayed awards, administrative bottlenecks, and unnecessary compliance burdens can undermine the very purpose of the program. We encourage Congress to pair strong funding with strong oversight to improve transparency, accountability, and timely delivery of resources to the communities that depend on them most."
Originally reported by CU Today.