WASHINGTON–With the deadline today for Treasury to provide its proposal to the White House on how it plans to essentially eliminate the CDFI Fund, credit unions and credit union organizations have been keeping their foot on the gas urging Treasury to respect the role the Fund plays in communities and with Americans.

The Defense Credit Union Council (DCUC), for example, said in a statement, “Through CDFI funding, institutions finance small businesses, expand affordable housing, and provide financial education, reducing reliance on predatory lenders. In FY2024 alone, CDFI program awardees financed over 109,000 small businesses and supported more than 45,000 affordable housing units, channeling $24 billion into underserved communities.”

America’s Credit Unions, Inclusiv, state leagues and associations, the African American Credit Union Coalition, CU Strategic Planning and others have also been contacting Treasury and elected representatives seeking to push back on the White House executive order demanding the CDFI fund be shuttered to “the maximum extent of the law.”

Documentary Shared

In a letter sent to the Hill, DCUC also highlighted the Oscar-nominated documentary, “The Barber of Little Rock,” which showcases the real-world impact of CDFIs, telling the story of Arlo Washington, a barber who founded People Trust – a CDFI – in 2008 to address the lack of banking services in his neighborhood​.

“Using money from his own paycheck to start the fund, Arlo began issuing small loans to low-income neighbors and fellow entrepreneurs who would otherwise have to turn to payday lenders​,” DCUC said. “Thanks to the CDFI program’s support, People Trust grew into the first Black-owned community development credit union in Arkansas. It brought affordable loans and financial education to a Black neighborhood of 30,000 residents that previously did not have a single bank – while a nearby predominantly white town of just 8,000 people had fourteen banks​.

Added Jason Stverak, DCUC’s chief advocacy officer, in a statement, “Now is the time to come together to protect CDFI funding and ensure this program continues to uplift lives and drive economic opportunity where it’s needed most. DCUC stands ready to work with you to safeguard this vital lifeline today and for future generations.”

AACUC Weighs In

Separately, the African American Credit Union Coalition (AACUC) sent a letter to Treasury regarding President Trump’s executive order,  “Continuing the Reduction of the Federal Bureaucracy,” which seeks the elimination of non-statutory components of the CDFI Fund.

“At the African-American Credit Union Coalition (AACUC), we work to improve economic development in underserved communities, and the CDFI Fund is critical to that mission,” wrote AACUC President Renee Sattiewhite. “We urge you to collaborate with the White House and the Office of Management and Budget to protect the CDFI Fund and ensure CDFIs can continue providing economic opportunities to these communities.

“Since its creation in 1994, the CDFI Fund has expanded capital access and spurred local economic development in underserved areas,” the letter continues. “It supports mission-driven financial institutions that promote affordable housing, homeownership, small businesses, jobs, and financial security. For every dollar of public investment, the Fund generates $8 in private sector funding, with CDFI credit unions leveraging each dollar to produce $12 in community lending.”

Sattiewhite told Treasury that CDFI credit unions play a “vital role” in underserved communities, serving over 19 million people across 2,800 branches nationwide, with $223 billion in active loans outstanding.

Quick Action

“As the Treasury Department reviews the Executive Order, we urge quick action to preserve the CDFI Fund’s personnel and operations,” Sattiewhite stated. “Cutting investments could limit funding for small businesses, affordable housing, and community projects, harming local economies and leading to job losses in struggling areas. The CDFI Fund’s proven impact on economic growth and financial stability must be safeguarded.”