WASHINGTON–Inclusiv and a coalition of 205 CDFI credit unions have sent a joint letter to several congressional committees and the Treasury Department expressing concerns over the “Trump Administration’s intent to withhold more than $200 million that was congressionally appropriated for the CDFI Fund for Fiscal Year 25.”
“We urge you to work with the Treasury Department to ensure the CDFI Fund obligates and deploys all
congressionally appropriated FY 25 CDFI funding in advance of September 30, 2025,” the letter reads. “Deploying the FY25 CDFI award funding will support CDFIs in scaling their critical work to expand affordable homeownership, strengthen small businesses, and create economic opportunity in low-income communities across the nation.”
Reason for Fund
The letter notes the CDFI Fund was established in 1994 as a bipartisan initiative to promote economic vitality and self- sufficiency in distressed, low-income, and persistent poverty communities.
“Since the CDFI Fund was established more than 30 years ago, CDFIs have proven their effectiveness as a market-based strategy to promote access to capital and catalyze economic growth, leveraging $8 of private investment for every $1 in public funding received,” the letter states. “CDFI credit unions are not-for-profit, member-owned and governed financial cooperatives that succeed by finding opportunities to make affordable, carefully underwritten loans where mainstream financial institutions are unable or unwilling to step in. They excel in finding and filling financing gaps.”
Reminder Offered
The letter reminds Congress that in 2024 alone, CDFI credit unions had $223 billion in active loans outstanding to their members, “underscoring the important role they play in the American economy.”
“CDFI credit unions also serve a broad range of communities, locating their branches where members need them—from small towns accessible only by boat or plane to co-locating branches in houses of worship and community spaces,” the letter continues. “More than 20 million Americans are member-owners of CDFI credit unions and access safe and affordable loans and financial services at more than 3,400 branch locations across the country, where their savings and loan repayments revolve within their communities. More than 70% of CDFI credit unions have at least one branch in a rural county, and rural counties include some of the most underbanked and economically distressed areas in the country.”
The letter asks Congress to ensure funds are released for the Financial Assistance (FA) and Technical Assistance (TA) awards, Native American CDFI Awards (NACA), the AmeriCorps CDFI Economic Mobility Corps, the Bank Enterprise Awards (BEA), Healthy Food Financing Initiative (HFFI), and Small Dollar Loan Program (SDL).
‘Uncertainty’ Remains
“Hundreds of applications have already been submitted for some of these programs, leaving CDFIs uncertain about when or if they will be able to receive this critical support to meet their communities’ demand for affordable financial products and services,” the letter states.
The full letter, including all of the credit unions that are co-signers, can be found here.