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DCUC warns elimination or reduction of CDFI Fund harms military families, undermine  financial stability in underserved communities

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.

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