WASHINGTON—Following President Trump signing an executive order that aims to eliminate seven federal agencies—including the Community Development Financial Institutions Fund (CDFI)—credit union trade groups have been focused on educating Congress on the impact and the value of the CDFI Fund.
DCUC Chief Advocacy Officer Jason Stverak emphasized the executive order cannot remove the CDFI as part of a statute, but the executive order directs that the agencies listed Friday are to be eliminated to the maximum extent.
“But this is a very direct threat to the future of the CDFI,” noted Stverak. We believe we needed to step in and try to provide some clarity and additional information.”
As CUToday.info reported, DCUC was busy over the weekend advocating for the CDFI Fund. On Saturday, the trade group issued a statement expressing its concerns over the March 14 executive order. DCUC followed up Sunday with a letter to U.S. Treasury Secretary Scott Bessent, and Monday morning sent additional letters to the HFSC, the Senate Banking, Housing, and Urban Affairs Committee, and the Senate Community Development Finance Caucus.
America’s Credit Unions responded Sunday with its letter to Bessent.
“As the Treasury Department reviews the implications of the Executive Order, I respectfully urge you to consider taking a broad interpretation of existing grant programs as comporting with statutory functions,” stated ACU President and CEO Jim Nussle in the letter.
ACU Chief Advocacy Officer Carrie Hunt acknowledged there are many “technical” questions about the future of the CDFI Fund that remain unanswered.
“We will have to continue to have conversations with Treasury to see ultimately what their recommendations are relative to the CDFI fund,” she said.
While analysts have stated following previous executive orders from Trump that the orders may likely face a legal battle, Hunt said the latest EO may face the same challenge.
“Based on what we've seen elsewhere, I would say yes,” said Hunt about a legal challenge to Friday’s order. “But, as I sit here (Monday morning) I am not aware of anything that's currently been filed.”