WASHINGTON, D.C (May 5, 2025) |
The Defense Credit Union Council (DCUC), has sent a letter to the House Appropriations Financial Services and General Government Subcommittee, voicing its strong opposition to proposed cuts to the Community Development Financial Institutions (CDFI) Fund, a program vital to the financial readiness and inclusion of military communities.
As Congress holds its May 6, 2025, oversight hearing on the U.S. Department of the Treasury, DCUC urges Committee members to reject any proposals to eliminate or reduce funding for the CDFI Fund.
“The Fund has served as a lifeline for military-serving credit unions and the communities they support, enabling decades of progress in expanding access to affordable financial services for those who serve our nation,” says Jason Stverak, DCUC Chief Advocacy Officer.
The CDFI Fund empowers mission-driven credit unions to operate in low-income and underserved areas, including regions surrounding military installations. DCUC’s letter noted that as of January 2025, nearly 495 credit unions are CDFI-certified, providing essential services such as small-dollar loans, financial education, and emergency assistance to junior enlisted servicemembers and their families—many of whom qualify as low-income under federal guidelines.
“Eliminating CDFI funding would force many military members to turn to predatory lenders or lose access to critical financial tools,” said Anthony Hernandez, DCUC President/CEO. “This program is not a handout—it’s a high-impact investment in national economic stability and financial readiness.”
DCUC Highlights Proven Outcomes and Return on Investment
In FY 2024 alone, the CDFI Fund enabled:
- $24 billion in community investments;
- Financing for over 109,000 small businesses;
- Creation of more than 45,000 affordable housing units.
- Credit unions located on or near military bases played a leading role in many of these projects. CDFI grants have helped them open branches in banking deserts, combat predatory lending, and expand services to communities often ignored by larger financial institutions.
Each federal dollar invested through the Fund attracts an estimated $8 in private capital— delivering a robust return on taxpayer investment and contributing to economic resilience.
Financial Readiness is National Security
DCUC stressed that financial stability is directly tied to military readiness. Frequent relocations, deployment-related expenses, and complex pay structures place unique financial stress on servicemembers. CDFI-funded programs provide essential support to help military families avoid high-cost debt and build long-term financial health.
“The wellbeing of our troops begins at home,” says Stverak. “Financial readiness is mission readiness. Cutting the CDFI Fund threatens both.”
DCUC urges the Subcommittee to take the following actions:
- Preserve CDFI Funding – Reject any efforts to eliminate or reduce FY 2026 appropriations.
- Sustain or Increase Funding – Maintain at least the current $324 million funding level and consider increasing it to meet growing needs.
- Ensure Treasury Accountability – Use the May 6 oversight hearing to seek clear assurances from Treasury that the CDFI Fund will remain a supported and operational pillar of financial inclusion.
Bipartisan Support and Future Coordination
DCUC reminds that the CDFI Fund has received consistent bipartisan support since its inception in 1994. The Senate Appropriations Committee recently recommended increasing the Fund’s FY 2025 budget to $354 million—a testament to its effectiveness. While DCUC supports additional initiatives like the proposed Rural Economic Development program, efforts must complement—not replace—the broader mission of the CDFI Fund.
“The CDFI Fund is indispensable in supporting the financial well-being of military families and underserved communities,” says Hernandez. “We thank the Subcommittee for its leadership and urge Congress to stand firm in protecting this vital resource. DCUC and our member credit unions remain committed to serving those who serve our country, and we are ready to assist in shaping policies that uphold that mission.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.