WASHINGTON—America’s Credit Unions is asking Treasury to recognize the “far-reaching benefits” of the Community Development Financial Institutions (CDFI) Fund and take steps to ensure its critical functions are preserved.
As CUToday.info reported, President Trump on Friday signed an executive order that aims to eliminate seven federal agencies—including the Community Development Financial Institutions Fund (CDFI).
In a letter to Treasury Secretary Scott Bessent, ACU President and CEO Jim Nussle emphasized that since 1994, the CDFI Fund has been a “bipartisan cornerstone for expanding access to capital in underserved communities by providing crucial funding and technical assistance that has driven affordable housing, homeownership, small business growth, sustainable job creation, and consumer financial security through powerful public-private partnerships. The CDFI Fund’s mission is particularly aligned with the priorities that have been championed by President Trump. During his first administration, there was a strong emphasis on investing in American communities, a vision that was embodied in initiatives such as the Opportunity Zone program.
“These initiatives sought to stimulate economic activity and create job opportunities in areas that had been left behind by decades of underinvestment,” continued Nussle. “The CDFI Fund has consistently demonstrated its capacity to serve as a catalyst for private sector investment, with every dollar of public funding leveraged to unlock at least eight dollars in private capital. This return on investment is even more impressive with credit union CDFIs, with each dollar awarded resulting in a return of twelve dollars in community lending. This market-driven approach not only accelerates economic growth but also fosters self-reliance and reduces long-term dependency on government assistance.”
Nussle noted that over the past three decades, the CDFI Fund has garnered widespread bipartisan support, earning recognition as one of the federal government’s most effective market-based strategies.
“As the Treasury Department reviews the implications of the Executive Order, I respectfully urge you to consider taking a broad interpretation of existing grant programs as comporting with statutory functions,” concluded Nussle. “Such an action would ensure the smooth execution of the economic empowerment of millions of Americans who rely on the services provided by CDFIs every day. The implications of modifying certain aspects of the CDFI Fund could extend well beyond immediate budgetary concerns, and warrants a careful review of these potential impacts. Reducing the investments made by the CDFI Fund could lead to a significant contraction in the availability of critical financing for small businesses, affordable housing projects, and community infrastructure initiatives. The ripple effects of these cuts would be felt across local economies, potentially resulting in job losses and diminished economic opportunities in regions that are already facing significant challenges.”