Communities Will Lose Vital Access to Programs if CDFI Fund is Unraveled

The Community Development Financial Institutions (CDFI) Fund has provided access to capital in underserved areas for nearly three decades. In December, many Americans may lose access to the funds deployed by nearly 1,400 lenders across the nation, thanks to the U.S. Treasury Department plans to eliminate the entire CDFI Fund staff through a permanent reduction in force (RIF). According to the memo received by Fund employees, their positions will be terminated, and separations from federal service will take effect Dec. 13, 2025.

If enacted, this RIF would effectively shut down the Fund, halting award processing, delaying critical programs, and jeopardizing communities that depend on its work. Prolonged disruption to the Fund would undercut Main Street businesses, first-time homeowners, and low-income members—exactly the people credit unions were created to serve.

Credit union CDFIs are a vital part of that ecosystem. Of the 1,427 certified CDFIs nationwide, nearly 500 are credit unions. Together, they amplify every federal dollar invested. For every $1 in CDFI Fund awards, credit union CDFIs leverage an additional $12 in private investment—financing new storefronts, homes, and small businesses in rural, urban, and tribal communities. Leaving the Fund understaffed strands that impact.

Treasury must move quickly to rehire staff and restore the Fund’s full capacity once operations resume. A functioning CDFI Fund is essential to national economic recovery and community resilience.

How You Can Help

Cornerstone and credit union system partners are meeting, strategizing, and reaching out to congressional champions for information and support.

For now, credit union leaders can help by sharing local examples of how your credit union has used CDFI funds to expand economic opportunity.

Talking Points to Emphasize:

• CDFI credit unions play a vital role in economic well-being for low-income communities.
• The Fund has strong bipartisan support for its proven effectiveness.
• Shutting it down would violate its statutory mandate and weaken the nation’s community lending infrastructure.

Stories have power and it’s imperative that Congress hears yours. If you are a credit union leader with a story to tell, contact media@cornerstoneleague.coop to share.