WASHINGTON—A bicameral letter from Congress has been sent to Treasury and the Office of Management and Budget (OMB) urging that the Community Development Financial Institutions (CDFI) Fund be preserved and that the staffing and resources needed to operate the fund be provided.
As the CU Daily has reported, the Trump administration and Treasury, as part of the permanent reduction-in-force (RIF) plans initiated amid the federal government shutdown, have said they plan to eliminate all staff of the CDFI Fund, even though Congress appropriated money for the fund as part of the National Defense Authorization Act (NDAA).
Crapo, Young Lead Effort
The congressional effort calling for restoration of staff and resources was led by Sen. Mike Crapo (R-Idaho) and Rep. Young Kim (R-Calif.).
The letter, signed by more than 100 Republican members of Congress, underscores the CDFI Fund’s vital role in supporting economic development in rural and underserved communities across the nation.
Support from America’s Credit Unions
“We deeply appreciate the leadership of Sen. Crapo, Rep. Kim, and every lawmaker who has lent their public support for the CDFI Fund. The CDFI Fund is one of the most effective tools our nation has to empower community-based lenders to drive meaningful economic growth and financial inclusion in underserved areas,” Jim Nussle, president/CEO of America’s Credit Unions, said in a statement. “Every dollar invested in the fund returns multiple times that value to families, small businesses and communities who need it most. We remain committed to working with Congress, the administration and our partners to ensure this critical program not only survives but thrives.”
Largest Group of CDFIs
As America’s Credit Unions noted, the 444 credit unions that are CDFIs represent the largest group of financial institutions within the fund, “reflecting the movement’s mission to serve those left behind by traditional finance structures. As not-for-profit, member-owned cooperatives, CDFI credit unions deliver affordable products, expand access to capital and create opportunity in communities across the country.”
Mailman Busy
The trade group noted it has:
• Sent 13 letters to Capitol Hill and nine letters to the administration supporting the CDFI Fund
• Held two high-level meetings with Treasury officials focused specifically on the fund’s future
• Targeted outreach campaigns mobilizing CDFI advocates nationwide
• Published multiple op-eds and public communications highlighting the fund’s economic impact
Uncertainty Continues
“While the CDFI Fund’s future remains uncertain amid the ongoing shutdown and potential reductions in force, America’s Credit Unions continues to work with lawmakers and CDFI champions to ensure the fund retains the personnel and resources necessary to meet its statutory mission,” the trade group said.
