WASHINGTON—Almost as fast as President Trump has been able to sign executive orders, lawsuits have been filed that have led, at least in some cases, to cutbacks and programs eliminated in those orders being reinstated. Could the same thing happen with the new executive order seeking to all but abolish the Community Development Financial Institution (CDFI) Fund?

“I would say yes,  but I am unaware…of anything that’s currently been filed,” said Carrie Hunt, America’s Credit Unions chief advocacy officer.

Jason Stverak of the Defense Credit Union Council agreed. 

“If you’re flying me to Vegas, it’s probably a better than even chance,” he said. 

Stverak added he believes many of the parties who might be involved in filing litigation are waiting until the Friday deadline for Treasury and the affected programs to provide a response to the administration’s order so there is a better understanding of how things “shake out” (see related story in the CU Daily.

“I’m confident that that many CDFI organizations and associations will take a look at the option of going to court.”

The key issues in any litigation will focus on the language of the Riegle Community Development and Regulatory Improvement Act of 1994, which among other things created the CDFI Fund. 

Litigation could also be filed related to other programs targeted by the March 14 order.