WASHINGTON–In response to the reduction in force eliminating all of the CDFI Fund staff, America’s Credit Unions and the Defense Credit Union Council have sent letters seeking to have the workers reinstated and the work resumed.
In the case of America’s Credit Unions, its letters, signed by ACU President and CEO Jim Nussle, seek to highlight the “positive impact and importance of preserving the future of the fund,” according to the trade group.
America’s Credit Unions said it has joined with the state leagues and Inclusiv to express to congressional and administration officials “the realities of how the CDFI Fund supports their constituents.”
In addition, America’s Credit Unions also responded to a letter from House Financial Services Ranking Member Maxine Waters (D-Calif.) seeking to provide information on how credit unions are stepping up and providing personalized support to those affected by the shutdown.
Letter to Treasury
In its letter to Treasury Secretary Bessent, Nussle wrote, “We ask that the first order of business when government operations resume is to rehire experienced personnel and promptly staff up so the Fund can carry out the mission Congress assigned and appropriated.”
“Congress created the CDFI architecture to expand economic opportunity by supporting a national network of community development lenders, investors, and financial service providers that serve people and places left behind.”
“Every CDFI dollar granted to a credit union generates $12 in private investment, fueling new storefronts, renovated homes, and revitalized main streets,” the letter continues. “Leaving the Fund unable to process awards or manage bond guarantees would strand that leverage.”
Letter to Senate
In its letter to the Senate, America’s Credit Unions noted that due to the Oct. 10 reduction-in-force (RIF) eliminating the entire CDFI Fund staff, it has created “massive uncertainty on how the Fund will continue to operate.” The group said that with the Senate’s support of the CDFI Fund Transparency Act (by including it in the FY2026 NDAA), there is bipartisan interest in understanding how the CDFI Fund will operate, making a hearing with the Treasury secretary timely and necessary.
“To that end, it is our hope that you will carry out the spirit of the Senate-backed CDFI Fund Transparency Act and schedule a hearing with Treasury Secretary Bessent or his designee as expeditiously as possible to provide answers on how Treasury envisions the Fund operating in the future given the RIFs that were announced last week,” the letter states. “Our CDFI-certified credit union members are deeply engaged in serving communities and families nationwide who need their support the most,” the letter continues. “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.”
Letter to Waters
In its letter to Rep. Waters, which responds to Waters’ own letter of Oct. 8 in which she requested information on what credit unions are doing to help their members during the government shutdown, America’s Credit Unions said:
• Credit unions across the country are working to publicize their assistance programs so their members are aware they have options. These efforts include direct messages to members, special webpages and banner ads, notifying local media, advertising, outreach to local relief organizations, and sharing information with elected officials.
• Credit unions have led the way in supporting Americans affected by the government shutdown, providing specific assistance to members that includes financial counseling, personalized loan products, loan modifications, and more.
DCUC Sends Letter to Treasury
The Defense Credit Union Council (DCUC) also sent a letter to U.S. Treasury Secretary Scott Bessent “expressing concern” over reports that the department’s recent reduction-in-force eliminated the entire staff of the CDFI Fund.
“For more than 30 years, the CDFI Fund has helped mission-driven lenders expand access to affordable financial services in low-income, rural, and military communities,” DCUC President/CEO Anthony Hernandez wrote. “Eliminating this program would directly harm working families, service members, and veterans who rely on CDFI credit unions for their financial well-being.”
Proven Impact Highlighted
In its letter, DCUC highlighted the Fund’s proven impact, noting that in FY2024 alone, “CDFI awardees financed over 109,000 small businesses, supported 45,000 affordable housing units, and delivered more than $24 billion in loans and investments to underserved areas,” DCUC said. “Every federal dollar invested leverages about $8 in private capital, making the program both effective and efficient.”
DCUC stressed that shuttering the Fund would have “immediate and severe consequences,” including reduced access to safe financial services and a rise in predatory lending—particularly affecting military families, 80% of whom report financial stress.
‘Mission Readiness’
“Financial readiness is mission readiness,” Hernandez said. “Reinstating the CDFI Fund team is critical to preserving the financial stability of military families and ensuring continued progress in economic inclusion.”
DCUC said it also reaffirmed its commitment to working with Treasury and Congress to protect and strengthen the CDFI Fund: “By restoring its capacity, we can continue uplifting underserved communities and supporting the brave service members who protect our nation.”
DCUC, ALM First Partner
Separately, DCUC said it has entered into a partnership with with ALM First “aimed at driving meaningful value, professional education, and innovative solutions to credit unions nationwide.”
The announcement was shared recently during the 2025 ALM First Financial Forum in Banff, Canada, by ALM First Principal Mike Ensweiler and DCUC President/CEO Anthony Hernandez.
“I’m proud to share that ALM First has entered into a strategic partnership with the Defense Credit Union Council,” said Ensweiler in a statement. “This is an exciting step forward for both organizations and for the credit union industry as a whole. This collaboration is designed to drive meaningful value, from expanding access to professional education to introducing new solutions which will assist credit unions in achieving their strategic goals. It reflects our continued commitment to innovation and to supporting the long-term success of credit unions nationwide. More to come as we build on this momentum.”
Added Hernandez in a statement, “By working together, we are creating new pathways for credit unions to strengthen their operations and better serve their members. Our mission has always been to champion credit unions and the communities they serve, especially military and veteran members. This partnership allows us to expand that support with access to innovative financial tools and educational resources.”
ALM First said it encourages interested credit unions to visit almfirst.com/events for more information on upcoming training and professional education opportunities.
