Support for tax status, CDFI Fund outlined ahead of Treasury hearing

Ahead of Treasury Secretary Scott Bessent’s testimony before the House Financial Services Committee, America’s Credit Unions urged Congress use the hearing with Treasury to advocate for the importance of the Community Development Financial Institutions (CDFI) Fund. 

“While the Administration has proposed severe cuts that would serve to eliminate CDFI program funding in its FY2026 budget message to Congress, we urge the Congress 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,” wrote President/CEO Jim Nussle, noting the CDFI Fund has been a bipartisan cornerstone for expanding access to capital in underserved communities since 1944. 

With tax issues falling under the Treasury Department, Nussle urged Congress to ensure the credit union tax exemption is preserved in any final reconciliation package that is passed into law. “We realize tax issues are not the purview of this Committee, but any oversight of the Treasury Department should ensure that it is committed to continuing credit unions’ ability to serve their 142 million members by supporting the preservation of the credit union tax exemption,” he wrote.  

Nussle reinforced America’s Credit Unions’ support for the “current regulatory structure of an independent NCUA run by a three-person bipartisan board as the primary federal regulator for credit unions.” While there has not been a proposal to change this structure, Nussle noted proper oversight of the Treasury Department “must ensure that the Department will continue to support this structure.” 

The letter also offered additional support for Treasury’s efforts to implement Executive Order 14247, “Modernizing Payments To and From America's Bank Account,” which would help address growing check fraud.