WASHINGTON—A federal judge here has temporarily blocked the pause on federal funds, grants, and loan disbursements issued in a recent Office of Management and Budget (OMB) memo, America’s Credit Unions reported.
ACU has a new Compliance Blog post examining potential impacts on programs used by credit unions if the pause takes effect.
This includes the Small Business Administration 7(a) program, Community Development Financial Institution (CDFI) Fund, NCUA’s Community Development Revolving Loan Fund (CDRLF), and Greenhouse Gas Reduction Fund, among others.
“Many credit unions access capital through federal grant programs to put dollars to work in communities. The CDFI Fund and CDRLF have long been essential to supporting low- to moderate-income households across the country,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “Newer grant programs also provide capital for home equity loans, electric vehicles, and other home improvements. America’s Credit Unions has provided agencies with our perspective on these programs.”
The OMB had indicated Social Security, SNAP, Pell Grants, and funds for small businesses, farmers, and similar programs would not be paused, ACU noted.
Former White House chief of staff Mick Mulvaney said Trump’s federal aid freeze could end up at the Supreme Court, The Hill reported.