WASHINGTON--Thursday morning the Defense Credit Union Council blanketed Capitol Hill with an email message urging bipartisan support for the Community Development Financial Institutions (CDFI) program.
The message was sent to more than 600 offices on Capitol Hill.
As CUToday.info reported, President Trump recently signed an executive order that aims to eliminate seven federal agencies—including the CDFI Fund.
"For over 30 years, the CDFI program has empowered mission-driven lenders—including credit unions and community banks—to provide affordable financial services in areas overlooked by mainstream finance. Nearly 500 credit unions hold CDFI certification, offering vital services to low-income neighborhoods and military families," stated DCUC Chief Advocacy Officer Jason Stverak in his message to Congressional offices. "Through CDFI funding, institutions finance small businesses, expand affordable housing, and provide financial education, reducing reliance on predatory lenders. In FY2024 alone, CDFI program awardees financed over 109,000 small businesses and supported more than 45,000 affordable housing units, channeling $24 billion into underserved communities."
In the correspondence, DCUC also highlighted the Oscar-nominated documentary, “The Barber of Little Rock,” which showcases the real-world impact of CDFIs, telling the story of Arlo Washington, a barber who founded People Trust – a CDFI – in 2008 to address the lack of banking services in his neighborhood.
"Using money from his own paycheck to start the fund, Arlo began issuing small loans to low-income neighbors and fellow entrepreneurs who would otherwise have to turn to payday lenders. Thanks to the CDFI program’s support, People Trust grew into the first Black-owned community development credit union in Arkansas. It brought affordable loans and financial education to a Black neighborhood of 30,000 residents that previously did not have a single bank – while a nearby predominantly white town of just 8,000 people had fourteen banks," Stverak explained.
DCUC recently shared its CDFI concerns with the U.S. Treasury and Congress.
Stverak noted that recently 23 senators sent a letter to Treasury Secretary Scott Bessent "to reaffirm [their] bipartisan support of the CDFI Fund, its operations, and the critical role it plays in the communities it serves."
"For decades, CDFI grants have enabled credit unions to open branches in underserved areas, provide emergency small-dollar loans, and invest in local economic growth – all efforts are now in jeopardy if this funding is cut. We continue to work closely with lawmakers, the Treasury Department, and industry partners to block any rollback of the CDFI Fund and to reinforce the program’s importance at every turn," wrote Stverak. "This is a pivotal moment for the CDFI program and the communities it serves. If funding is slashed, the consequences will be dire: small businesses will lose critical financing, families will be driven back toward predatory lenders, and entire neighborhoods could be starved of investment. We cannot allow that to happen."
Stverak explained that CDFIs have always garnered broad bipartisan support, and that DCUC appreciated Bessent's recent statement to lawmakers that the presence of CDFIs in underserved communities is “very important” to the strength of the U.S. economy.
"Now is the time to come together to protect CDFI funding and ensure this program continues to uplift lives and drive economic opportunity where it’s needed most," said Stverak in his email message. "DCUC stands ready to work with you to safeguard this vital lifeline today and for future generations."