WASHINGTON—The White House Office of Management and Budget (OMB) rescinded a memo Wednesday that had ordered a temporary pause on federal grants.
As CUToday.info reported, almost as quickly as the memo was released on Monday, a federal judge in Washington temporarily blocked the pause. Then, on Wednesday, the OMB pulled back the memo.
Pablo DeFilippi
The Washington Post reported the memo “caused mass chaos and confusion across Washington, appearing to imperil government programs that fund schools, provide housing and ensure low-income Americans have access to healthcare.”
Community Development Financial Institution (CDFI) credit unions, as well, shared concerns for the future of their funding, explained Pablo DeFilippi, Inclusiv EVP.
“These resources, like the CDFI fund, the clean energy programs, they are acts of Congress. Whether or not the Administration has the authority to take these actions is a question that would have to have been answered,” DeFilippi told CUToday.info. “I guess at this point (the White House) is not pursuing this, for the time being.”
Dollars Strengthen Communities
DeFilippi said Inclusiv Wednesday was focused on making sure the organization is conveying to the Administration that CDFI dollars are important to communities across the country, and have a big impact on the economy.
“The CDFI Fund strengthens communities and gives small businesses access to funding,” DeFilippi said.
DeFilippi said that if the freeze had not been rescinded, or struck down in court, there are many credit unions that were depending on the dollars.
“These dollars were already granted,” DeFilippi explained.
DeFilippi chose not to speculate on whether the freeze order might come back at a later date, only saying “we’re keeping our eyes on the ball.”
“But the problem is that this freeze happened, even if for a brief time,” he continued. “That has created some uncertainty (among the CDFI community) and can possibly become a distraction.”