Treasury to OMB: All CDFI programs are required by law

All 11 programs or functions run by the Treasury’s Community Development Financial Institutions (CDFI) Fund are required by law, according to a document from the Treasury to the Office of Management and Budget (OMB) that was reported Friday. The programs include Native American CDFI Assistance Program, New Markets Tax Credit, Small Dollar Loan Program, and more.

This follows relentless and collective credit union advocacy efforts, including America’s Credit Unions’ engagement with the administration and Congress on the future of the CDFI Fund and how it aligns with the administration’s goals of increasing financial inclusion.

“America’s Credit Unions is pleased Treasury confirmed to OMB that all 11 CDFI programs are statutory and listened to our feedback on how important the programs are to communities across America,” said Americas Credit Unions President/CEO Jim Nussle. “With over 500 CDFI certified credit unions, it reflects the industry’s mission of providing safe and secure financial services so millions of people can achieve financial well-being. America’s Credit Unions is not letting the foot off the gas and will continue to engage with the White House, Treasury, and other stakeholders so that families can reach their American Dream in a prosperous economy.”

A recent Executive Order (EO) raised questions about the future of the CDFI Fund, with the Treasury required to provide recommendations for what programs were statutory. It is now up to the OMB to determine their next steps.  

America’s Credit Unions Chief Advocacy Officer Carrie Hunt met with OMB officials last week to emphasize key statistics in support of the CDFI Fund and its benefits to underserved communities, including how credit unions generate $12 in private capital for each federal dollar awarded through the program.