Following President Donald Trump’s Executive Order (EO) dated March 14 which limited the Community Development Financial Institutions (CDFI) Fund to its statutory functions, Treasury Secretary Scott Bessent released a statement clarifying that CDFI Fund programs are statutory programs.

“This Administration recognizes the important role that the CDFI Fund and CDFIs play in expanding access to capital and providing technical assistance to communities across the United States. CDFIs are a key component of President Trump's commitment to supporting Main Street America in the pursuit of job growth, wealth creation, and prosperity,” stated Bessent. “As required by President Trump's March 14, 2025, Executive Order, the Treasury Department will provide a response to the Director of the OMB on this matter and looks forward to future engagement with CDFIs and other stakeholders to strengthen the impact of these statutory programs and incentivize economic opportunities for all Americans.”

America’s Credit Unions proactively addressed the CDFI Fund with Bessent earlier this year when he was appointed Treasury Secretary, encouraging support. Following the EO’s release, America’s Credit Unions, in partnership with state leagues, Inclusiv, and other industry stakeholders, quickly responded to administration officials. Building on the earlier conversation, the letter highlighted how credit unions successfully use the CDFI Fund to support economic prosperity,  the strong return on investment, and how it aligns with the administration’s priorities. 

"We thank Secretary Bessent for emphasizing that CDFI Fund programs are statutory programs and stressing the importance of the CDFI Fund to the success of Main Street America. Nearly 500 credit unions are designated as a CDFIs and are critical institutions in boosting local economies and securing the American Dream for their members,” said Jim Nussle, America's Credit Unions president/CEO. “America’s Credit Unions has remained committed to educating and providing support to ensure the credit union difference is shared with the Trump Administration, Treasury Department, and other key stakeholders so the millions of Americans served by CDFI credit unions can reach their goals and live their best lives." 

America’s Credit Unions has long advocated for support of the CDFI Program and will continue to engage Treasury and administration officials and provide credit unions with additional updates as developments occur. Tuesday’s Compliance Blog entry goes into detail about the EO, which programs are in statute, and what credit unions can do now to review CDFI programs.