WASHINGTON—Following reports that the Treasury Department’s reduction-in-force (RIF) eliminated all staff of the CDFI Fund, effectively shuttering the program, the Defense Credit Union Council is urging Treasury to reinstate the CDFI Fund team.
As CUToday.info reported, Treasury’s staff reductions were part of mass firings of federal staff that began Friday.
In a letter to Treasury Secretary Scott Bessent, DCUC President CEO Anthony Hernandez expressed the trade group’s “deep concern” for the CDFI staff cuts.
Anthony Hernandez
“Multiple reports indicate that last week, the Treasury Department’s reduction-in-force eliminated all staff of the CDFI Fund, effectively shuttering this crucial program. I respectfully urge you to reconsider this decision and reinstate the dedicated CDFI Fund team as soon as possible,” Hernandez said. “This step is critical to preserving a program that is a lifeline for credit unions serving low-income, rural, and military communities across our nation.”
Hernandez recognized Treasury’s past recognition of CDFIs’ vital role in expanding access to capital and financial services.
“We also understand the difficult position the ongoing budget impasse has placed on federal agencies,” he wrote. “However, we believe strongly that terminating the CDFI Fund’s entire staff is a grave mistake, one that runs counter to the Treasury’s mission of promoting economic growth and stability. The CDFI Fund has a statutory mandate from Congress to spur development in underserved areas, and it ‘must be allowed to continue its vital work to certify lenders and disburse Congressionally appropriated funding’ even amid these challenges...
“DCUC and its member credit unions stand ready to work with you and your staff to find a path forward,” continued Hernandez. “We have been actively engaging with Congress and other stakeholders to secure the CDFI Fund’s future, and we will continue to do so. In the meantime, we are providing guidance to our member credit unions on how to support their communities through this uncertainty. I know that you, as Secretary, share our dedication to economic opportunity and financial security for all Americans. By restoring the CDFI Fund’s capacity, we can continue this important work together.”