103 lawmakers defend value of CDFI Fund

More than 100 Republican lawmakers signed on to a letter reaffirming the value of the Treasury Department’s Community Development Financial Institutions (CDFI) Fund, sent directly to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought Thursday.

The bicameral letter was spearheaded by Senate Finance Committee Chairman Sen. Mike Crapo, R-Idaho, and Rep. Young Kim, R-Calif. Crapo also co-chairs the Senate’s Community Development Finance Caucus. Key congressional leaders signed the letter, including Senate Banking Committee Chairman Tim Scott, R-S.C.

The letter urges the Administration to “continue carrying out the statutory obligations of the CDFI Fund that are essential to ensuring private investments reach our states and districts.”

“CDFIs play an important role in supporting economic development in rural, tribal, and other underserved communities in our states. They enhance the viability of community development projects, especially in rural areas, by offering flexible financing tools such as longer loan terms and interest-only repayment periods,” wrote lawmakers, who also noted that eliminating the CDFI Fund would “negatively impact our economy long-term.”

Credit unions make up the largest group of certified CDFIs with 444 of 1,375 as of August 12. Working together with leagues and Inclusiv, America's Credit Unions is focused on its ongoing efforts to drive continued emphasis of the CDFI Fund's positive impact in the wake of the Treasury Department’s reduction in force.

“We deeply appreciate the leadership of Senator Crapo, Representative Kim, and every lawmaker who has lent their public support for the CDFI Fund. The CDFI Fund is one of the most effective tools our nation has to empower community-based lenders to drive meaningful economic growth and financial inclusion in underserved areas,” said Jim Nussle, America’s Credit Unions president/CEO. “Every dollar invested in the Fund returns multiple times that value to families, small businesses, and communities who need it most. We remain committed to working with Congress, the Administration, and our partners to ensure this critical program not only survives but thrives.”

America’s Credit Unions sent a message to all CDFI credit unions Thursday, outlining where things stand and the industry’s ongoing advocacy efforts to support CDFI credit unions.

The association’s advocacy to protect and improve the CDFI Fund has been nonstop in 2025, with over 20 letters sent to lawmakers and regulators, over 45 news stories about CDFIs and the CDFI Fund published in America’s Credit Unions news, and two key meetings with the Treasury Department on the topic of CDFIs. America’s Credit Unions will continue to advocate on behalf of CDFI credit unions and the CDFI Fund, ensuring lawmakers understand that a prolonged disruption would undercut Main Street businesses, first-time homeowners, and low-income communities.