WASHINGTON–America’s Credit Unions said the sentiments expressed during a call involving the Small Business Administration (SBA) and the Treasury Department related to the Community Development Financial Institutions (CDFI) Fund align with many of its priorities, although there was no discussion of whether funding will be restored.
The discussion took place as part of the first agency’s Interagency Task Force on Veterans Small Business Development under the new administration.
America’s Credit Unions said that during the call Treasury stated it is looking to incentivize the CDFI fund to support manufacturing, childcare, and expanded access to credit.
Treasury officials also emphasized CDFIs’ role in financial literacy, highlighting programs across each agency, as financial literacy is a major part of Treasury Secretary Scott Bessent’s agenda, America’s CUs said.
Treasury staff further indicated that Bessent is focused on deregulation within the community banking space, although there was no specific mention of credit unions.
Support for Full Funding
America’s Credit Unions said it supports full funding for the CDFI Fund in FY2026, strongly supports bipartisan legislation that would exempt loans made to veteran-owned businesses from the member business lending cap, and advocates for additional ways to serve military members, families, and communities.
The Trump administration has announced it plans to slash the CDFI Fund. More than 400 credit unions are CDFIs.
