Severe cuts to CDFI Fund should be rejected
Funding levels for the Community Development Financial Institutions (CDFI) Fund and Community Development Revolving Loan Fund (CDRLF) are the focus of multiple letters sent to Congress by America’s Credit Unions ahead of Treasury Secretary Scott Bessent’s budget testimony today before a Senate Appropriations Subcommittee.
The first letter outlined credit union concerns with proposed cuts to the CDFI Fund and CDRLF. America’s Credit Unions President/CEO Jim Nussle wrote, “While the administration has proposed severe cuts that would serve to eliminate CDFI program funding in its FY2026 budget, we urge the subcommittee to reject this request and continue funding the CDFI Fund at a minimum of at least its FY2025 funding level of $324 million for FY2026. We urge the subcommittee to use this oversight hearing with the Treasury Secretary to advocate for the importance of the CDFI Fund and to secure the Treasury Department’s commitment to using any funding appropriated to the Fund for FY2026.”
It also urged the protection of the credit union tax status and reiterated America’s Credit Unions’ “steadfast support for maintaining an independent NCUA as the federal credit union regulator.”
Nussle sent a similar letter to the House Ways and Means Committee, sharing concerns and thanking the committee for securing the credit union tax status in its portion of the House-passed reconciliation bill.
Today, Bessent will testify before the House Ways and Means Committee, starting at 10 a.m. Eastern, and before the Senate Appropriations Subcommittee on Financial Services and General Government at 4:00 p.m. Eastern.
