COLUMBUS, Ohio—Ohio’s credit unions are warning that proposed federal funding cuts to a key community development program could significantly impact their ability to serve underserved communities.
The Ohio Credit Union League said credit unions across the state held a Zoom press conference to highlight the importance of the Community Development Financial Institutions, or CDFI, Fund as Congress and the White House debate the fiscal year 2027 budget.
As the CU Daily has reported, the White House has proposed a $204 million reduction to the CDFI Fund, cutting total funding from $324 million to $120 million for FY2027.
Ohio is home to 20 credit union CDFIs that provide financial services in communities that may not otherwise attract traditional investment, the league said. These institutions focus on expanding access to credit, financial education and economic development.
Focused Investments
“The CDFI has helped us in doing more focused investments, like down payment assistance, in underserved areas,” said Bill Wittig of CSE Federal Credit Union, according to the Ohio Credit Union League. “We also helped individuals with trade school assistance, deferring payments and interests until they graduated.”
Joe Eckley of Day Air Credit Union said the designation allows institutions to better serve underserved communities. “We’re able to reach out to the underserved communities in Dayton and extend lending to them that financial institutions are traditionally not able to,” Eckley said.
Examples Shared
Other credit union leaders cited similar uses of CDFI funding:
- Christine Blake of Cardinal Credit Union said funds support financial education partnerships with high schools and lending for families.
- Angela Finn of Commodore Perry Federal Credit Union said programs include nontraditional student loans and payday loan alternatives.
- Jacqueline Moore of Faith Community United Credit Union warned that losing funding would immediately impact financial literacy and small business programs.
“It will be a great impact for us if we lose that funding,” Moore said, according to the league.
Broader Economic Role
Data from the Ohio CDFI Network shows the broader economic role of the program:
- More than 75,000 jobs created or retained
- More than 50,000 affordable homes financed
- More than 25,000 microbusiness loans supported
- Lending activity in all 88 counties in Ohio
Credit unions, which are not-for-profit and member-owned, rely on programs like the CDFI Fund to expand access to financial services and support economic growth in underserved areas, the Ohio Credit Union League said.
Buckeye State CDFIs
Ohio’s CDFI credit unions include:
- Abbey Credit Union, Inc., Vandalia
- Atomic Credit Union, Piketon
- Buckeye State Credit Union, INC., Akron
- CSE Federal Credit Union, Canton
- Cardinal Credit Union, Mentor
- Commodore Perry Federal Credit Union, Oak Harbor
- Day Air Credit Union, Kettering
- Desco Federal Credit Union, Portsmouth
- Faith Community United Credit Union, Cleveland
- Greater Cleveland Community Credit Union, Inc., Cleveland
- Hopewell Federal Credit Union, Heath
- MyUSA Credit Union, Middletown
- New Horizon Federal Credit Union, Barberton
- North Coast Credit Union, Fairview Park
- Nueva Esperanza Community Credit Union, Toledo
- Softite Community Federal Credit Union, Martins Ferry
- St. Joseph’s Federal Credit Union, Canton
- Telhio Credit Union, Inc., Columbus
- Toledo Urban Federal Credit Union, Toledo
- TrueCore Federal Credit Union, Newark
