U.S. Department of the Treasury in Washington, D.C.
Two major credit union trade groups urged the U.S. Treasury Department to immediately reinstate staff for the Community Development Financial Institutions (CDFI) Fund, following reports that a recent reduction-in-force eliminated the entire team responsible for administering the program.
In an Oct. 13 letter to Treasury Secretary Scott Bessent, the Defense Credit Union Council (DCUC) warned that eliminating the fund’s staff would have “immediate and severe consequences,” particularly for military families. “For more than 30 years, the CDFI Fund has helped mission-driven lenders expand access to affordable financial services in low-income, rural and military communities,” DCUC President/CEO Anthony Hernandez wrote. He noted that in FY2024 alone, CDFI awardees financed over 109,000 small businesses, supported 45,000 affordable housing units and delivered more than $24 billion in loans and investments, leveraging $8 in private capital for every federal dollar.
America’s Credit Unions also sent letters to Treasury, Senate Banking Committee leadership, and lawmakers highlighting the critical role CDFIs play in underserved communities and urging swift action to restore operations.
“Shuttering the fund would undermine financial inclusion and harm families and communities that depend on credit unions,” the organization wrote.
DCUC reiterated its commitment to work with Treasury and Congress to restore the fund’s capacity. “Financial readiness is mission readiness,” Hernandez emphasized. “Reinstating the CDFI Fund team is critical to preserving the financial stability of military families.”
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.