Advocating for CDFI Fund solutions with Treasury, Congress

Outreach to the Treasury and Congress sent Tuesday aims to ensure appropriate funding for Community Development Financial Institutions (CDFIs). Following last week’s announced elimination of the Community Development Financial Institutions (CDFI) Fund staff, America’s Credit Unions sent letters outlining the potential negative impact on the communities it serves if the CDFI Fund is terminated. These efforts are part of an aligned strategy from America's Credit Unions, leagues, and Inclusiv. 

In the letter to Treasury Secretary Scott Bessent, Nussle requested the Fund to prioritize rehiring experienced CDFI personnel. 

“When the shutdown ends, the Fund should have the people and skills in place to restart operations quickly and communicate clearly with applicants and awardees,” he wrote. “America’s Credit Unions will continue to encourage constructive engagement on the Hill to ensure a swift end to the shutdown and a clear runway for the Fund’s return to full function.”

Nussle noted that the statutory authority of the fund to exist and its purpose are clear. He also added credit unions “are a central pillar of that network” to get funds to underserved communities.  

In the letter to Senate Banking Committee leadership, Nussle called on the Committee to schedule a hearing with Bessent or a designee to “provide answers on how Treasury envisions the Fund operating in the future,” given the reductions. 

“Our CDFI-certified credit union members are deeply engaged in serving communities and families nationwide who need their support the most,” he wrote. “They are closely monitoring the Fund’s operations and are eager to understand how the federal government shutdown and resulting staff reductions may affect the Fund’s ability to distribute awards and fulfill its Congressionally mandated mission.”

Nussle reminded the Senators that the Senate-passed version of the National Defense Authorization Act contains America’s Credit Unions sought language to mandate testimony from the CDFI Fund on its operations and urged that the Committee go ahead and carry out this function to gather answers about the future of the Fund in light of the recent Senate action and RIF announcement.  

America's Credit Unions will continue to work alongside leagues and Inclusiv for continued emphasis of the CDFI Fund's positive impact.