Credit union CDFI advocacy at work: OMB meeting and committee outreach
As part of the ongoing credit union efforts to engage with the administration on the future of the Community Development Financial Institutions (CDFI) Fund, America’s Credit Unions Chief Advocacy Officer Carrie Hunt and Inclusiv President/CEO Cathie Mahon and other CDFI stakeholder groups met with Office of Management and Budget Associate Director Mark Calabria Tuesday.
A recent Executive Order (EO) raised questions about the future of the CDFI Fund, though Treasury Secretary Scott Bessent has said CDFI’s are a “key component” to supporting Main Street. The Treasury also responded to several CDFIs late last week noting the CDFI Fund programs are authorized by statute.
Hunt and Mahon shared the credit union perspective with Calabria, outlining how the CDFI Fund’s leveraged capital aligns with the administration’s goals of increasing financial inclusion.
America’s Credit Unions’ data shows that all CDFIs generate $8 in private capital for every federal dollar of public funding, while every dollar awarded to a CDFI credit union results in $12 in community lending.
FAQs on the CDFI Fund EO are available, and America's Credit Unions, leagues, Inclusiv and others continue to advocate for appropriate funding for CDFI initiatives, as well as accountability and transparency throughout the certification and designation processes.
America’s Credit Unions also wrote to the House Financial Services Committee Tuesday for its hearing on capital access, emphasizing the importance of the CDFI Fund.
“The collaborative public-private partnerships fostered by the CDFI Fund are a critical element that merits careful consideration,” America’s Credit Unions President/CEO Jim Nussle wrote to committee leaders. “By leveraging federal resources to stimulate significant private sector investment, the Fund plays a key role in revitalizing local economies. This strategy not only reduces the long-term financial strain on the federal government but also empowers local institutions to drive their own growth.”