Donald Trump
In response to President Trump’s fiscal year 2026 budget proposal recommending the elimination of the Community Development Financial Institutions (CDFI) Fund’s discretionary awards, credit union leaders are sounding the alarm about the consequences for underserved communities and military families.
America’s Credit Unions President/CEO Jim Nussle made clear the organization’s opposition to the proposed cut. “We are not aligned with the suggestion to eliminate the CDFI Fund’s discretionary awards,” Nussle said. “Credit unions remain dedicated to serving all underserved communities, regardless of geography,” adding that the organization will continue to work with Congress and the administration to secure full CDFI funding.
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The Defense Credit Union Council (DCUC), which represents institutions serving over 40 million Americans including active-duty military and veterans, submitted a letter to Treasury Secretary Scott Bessent warning of the risks. “Cutting the CDFI Fund would push military families back toward predatory lenders and stall decades of progress in financial inclusion,” said DCUC President/CEO Anthony Hernandez. “This program is not a handout—it’s a high-impact investment in national economic stability.”
The letter highlights that in FY2024 alone, CDFIs injected more than $24 billion into underserved communities, financing over 109,000 small businesses and supporting 45,000 affordable housing units—many led by credit unions near military bases. The DCUC also expressed support for a proposed $100 million Rural Economic Development program but urged continued investment in the broader CDFI Fund.
Inclusiv President/CEO Cathie Mahon weighed in with the following statement: “This proposed budget could effectively eliminate the CDFI Fund programs used by credit unions. The FA\TA programs are not a subsidy for CDFI operations but rather a highly effective federal investment in economic opportunity across the country. CDFIs are conduits for federal investment, leveraging government funds more than 8:1 and invest in the types of projects or lending that would not otherwise be made affordably in communities. We look forward to showing the Administration and Congress that we are the most effective vehicle for accomplishing local economic development and affordable housing goals.”
Nationwide, nearly 500 CDFI-certified credit unions now serve over 19 million people through 2,800 branches. “We cannot afford to let budget decisions destabilize the financial future of those who serve our country,” Hernandez said.
As budget negotiations intensify, credit unions are uniting to defend a fund they say remains essential for financial inclusion, local economic growth, and the well-being of military families.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
