Credit unions to fight Trump plan to eliminate CDFI program

Credit union trade groups Thursday vowed to fight President Trump’s plan to kill the Community Development Financial Institutions Fund (CDFI) program, as proposed in the administration’s FY2018 budget plan.

“The Administration’s dramatic reduction of funding to the CDFI Fund will negatively impact its stated goal to invest in America’s infrastructure,” Cathie Mahon, CEO of the National Federation of Community Development Credit Unions. “CDFIs are one of the most effective mechanisms to channel capital into under-resourced communities.”

The federation represents more than 280 credit unions that are certified as CDFIs. They serve more than 7.4 million members in 46 states and have combined assets of more than $70 billion. Mahon said CDFI credit unions leverage more than $12 in private sector funds for every $1 in public money.

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