WASHINGTON, D.C (May 2, 2025) |
In response to a proposal in President Trump’s FY2026 budget to eliminate the Community Development Financial Institutions (CDFI) Fund, the Defense Credit Union Council (DCUC) has promptly issued a letter to Treasury Secretary Scott Bessent, warning the move would severely disrupt access to affordable financial services for military families and low-income communities nationwide.
Representing credit unions that serve over 40 million Americans, including active-duty servicemembers, veterans, and their families, DCUC recognizes the CDFI Fund as a “lifeline” that has helped defense credit unions expand access to emergency loans, financial education, and essential services in banking deserts across the country.
“Cutting the CDFI Fund would push military families back toward predatory lenders and stall decades of progress in financial inclusion,” says Anthony Hernandez, DCUC President/CEO. “This program is not a handout—it’s a high-impact investment in national economic stability.”
In the letter, Hernandez noted how just in FY2024 alone, CDFI institutions channeled over $24 billion into underserved communities, financing more than 109,000 small businesses and supporting 45,000 affordable housing units. Many of these efforts were led by credit unions located near or on military installations—areas disproportionately affected by rural poverty and financial insecurity.
DCUC also voiced support for the Administration’s proposed $100 million Rural Economic Development program—which would be housed under the CDFI Fund—and offered to help design and implement the new initiative.
DCUC has requested a direct meeting with Treasury leadership to discuss preserving key elements of the CDFI program and partnering on solutions to support military financial readiness.
“The cost of eliminating the Fund far outweighs any short-term budget savings, as it would squander decades of investment in economic revitalization and financial readiness for those
who serve our country, Hernandez said, adding, “We cannot afford to let budget decisions destabilize the financial future of those who serve our country.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.