State of Ohio flags waving in front of the Statehouse in Columbus, OH. Credit: aceshot/Adobe Stock
Ohio credit unions sounded the alarm over proposed federal cuts to the Community Development Financial Institutions (CDFI) Fund, warning the reductions could significantly impact underserved communities across the state.
During a virtual press conference, credit union leaders emphasized the role CDFI funding plays in expanding access to affordable financial services. The White House's FY2027 budget proposal included a $204 million cut to the program, reducing funding from $324 million to $120 million.
Ohio is home to 20 CDFI-certified credit unions, which collectively have financed more than 50,000 affordable homes and nearly 26,000 microbusiness loans, according to the Ohio CDFI Network. These institutions also have helped create or retain more than 75,000 jobs statewide.
Industry leaders said the funding supports a wide range of programs, from down payment assistance and trade school financing to small business lending and financial literacy initiatives.
"It will be a great impact for us if we lose that funding," said Jacqueline Moore of Faith Community United Credit Union, noting some programs could be eliminated entirely.
Other credit union executives highlighted efforts to provide nontraditional student loans, payday lending alternatives and partnerships with local schools to improve financial education.
CDFIs are designed to serve communities that may not attract traditional investment, including rural and low-income areas. Credit union advocates said cuts to the fund could limit their ability to fulfill that mission as Congress debates final budget decisions.
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