WASHINGTON–America’s Credit Unions is expressing optimism that when the government shutdown ends, Treasury employees who administered the CDFI Fund will be returned to their jobs after having been fired by the Trump administration as part of a reduction in force.
The CDFI staff currently remain employed but are furloughed as a result of the shutdown. CDFI staff numbered around 100 at the end of 2024. The terminations are to take effect Dec. 13. There are approximately 500 CDFI credit unions in the U.S.
Greg Mesack, SVP of advocacy with America’s Credit Unions, said the trade group is looking to work with both Treasury and Congress to ensure staff are rehired and brought back when the shutdown is resolved. Mesack noted there remain hundreds of millions of dollars in undeployed CDFI funds from 2025, as well as additional funds included in the recently passed National Defense Authorization Act (NDAA) for 2026.
‘Uniquely Bipartisan’
Mesack reminded that the CDFI Fund was statutorily created by Congress and that it remains “uniquely bipartisan.”
“I think there’s a lot of bipartisan support for seeing its operations continue… and for the support it provides to community financial institutions to help their communities,” said Mesack.
While Mesack and America’s Credit Unions are expressing optimism that the CDFI Fund ultimately will again be functional and providing grants to credit unions, the Trump administration since taking office has actively worked to undermine and eliminate it, with Office of Management and Budget (OMB) Director Russell Vought especially opposed.
Mesack acknowledged that reality, but said there are also equally strong supporters in Congress who have the ear of the president and the ability to “apply pressure.”
‘Honest’ Belief in Treasury Support
Mesack said he also “honestly believes” Treasury Secretary Scott Bessent supports the CDFI Fund.
“I’m not saying it’s going to be easy, but I do think… we can prevent this from being treated the same way a lot of other funds have, because unlike some of those other programs, there’s a lot of unified bipartisan support in Congress,” Mesack said, adding that the fact money for the CDFI Fund was added to the just-passed NDAA indicates there is strong support, as well.
“But I do think this is the downside of the shutdown; it empowers those who want less and those who want to cut these programs,” Mesack said. “The shutdown scenario makes it easier for that side of the discussion to have the upper hand and to take actions like this. We need the government reopened. We need Treasury fully staffed so we can start to try to begin processing applications and awarding funds.”
Ground to a ‘Halt’
In the meantime, Mesack said all applications and paperwork will continue to go unprocessed as “all the work grinds to a halt. For people who have questions, who need assistance, there is literally no one to pick up the phones.”
While the lack of CDFI funds presents no existential risks to credit unions, Mesack noted it does negatively affect the communities in which the funds were to be disbursed. He said research shows that broadly every $1 in CDFI funds creates $8 in economic development. For credit unions, that figure rises to $12.
