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Update 3/24/2025:
The White House Office of Intergovernmental Affairs within the Executive Office of the President has stated the U.S. Department of the Treasury remains committed to the Community Development Financial Institutions Fund (CDFI Fund) following the executive order issued on March 14.
The message reads:
"The CDFI Fund programs and related activities are statutorily authorized. The CDFI Fund is operating as normal and does not anticipate any disruptions to the programs. Senior leadership at Treasury has consistently expressed support for CDFIs."
This follows U.S. Sens. Mark R. Warner (D-VA) and Mike Crapo (R-ID)'s letter to the Trump Administration emphasizing the importance of the CDFI Fund and the critical role CDFIs play in serving communities across the nation.
CDFIs undergo rigorous annual reporting to ensure they meet the Fund’s mission of supporting economically disadvantaged communities. The data shows these institutions continue to provide critical financial services, including affordable lending and community development initiatives, helping Americans that may not have access to traditional banking. At this time, the CDFI Fund remains operational without disruption.
We will provide updates as more information becomes available.
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Originally Published 3/14/25:
On Friday March 14, 2025, President Trump signed an Executive Order titled “Continuing the Reduction of the Federal Bureaucracy,” which specifically targets the reduction of non-statutory components of various federal programs, including the Community Development Financial Institutions (CDFI) Fund. The order directs agencies to “reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law.”
This development has understandably raised concerns within the credit union and CDFI communities. CUCollaborate is actively monitoring the situation and assessing its potential implications.
It is important to note that while the Executive Order signals an intent to curtail certain federal programs, the CDFI Fund itself was established by statute and is authorized by Congress. Historically, the program has garnered strong bipartisan support, reflecting its critical role in promoting access to financial services in underserved communities. Any significant structural or funding changes would require congressional action, not solely executive direction.
At this time, there has been no official guidance from the CDFI Fund regarding immediate changes to certification, grant programs, or funding opportunities. For this reason, CUCollaborate’s position is to move forward with all planned certification, grant application, and compliance efforts. Staying on track ensures credit unions remain eligible and well-prepared, regardless of how the situation develops. Missing key deadlines could put future participation in jeopardy unnecessarily.
Additionally, we encourage all credit unions and stakeholders to proactively engage in advocacy efforts. We will forward additional resources and calls to action from America’s Credit Unions and other industry advocates to help amplify your voice.
CUCollaborate remains fully committed to supporting our clients and partners throughout this evolving situation. We will continue to provide updates as more information becomes available. In the meantime, if you have any questions or concerns, please don’t hesitate to contact us directly.
CDFI Fund
