DCUC Applauds Reinstatement of CDFI Fund Staff, Urges Full Restoration of Program

​WASHINGTON, DC – The Defense Credit Union Council, DCUC, applauds the rehiring of all Community Development Financial Institutions (CDFI) Fund employees following recent layoffs. DCUC praised this development as a crucial step toward restoring the Fund’s mission of providing affordable financial services to underserved communities and military families. The announcement comes just weeks after reports that a reduction-in-force had eliminated the entire CDFI Fund staff, effectively shuttering the program. DCUC had warned that eliminating this program would be a “grave mistake” with far-reaching impacts on financial readiness and military preparedness

For more than 30 years, the CDFI Fund has helped mission-driven lenders expand access to affordable financial services in low-income, rural, and military communities. It serves as a vital catalyst for economic opportunity in areas often overlooked by traditional finance. In Fiscal Year 2024 alone, CDFI Fund awardees achieved remarkable results, including:

• Supporting Small Businesses: Financed over 109,000 small businesses, fueling entrepreneurship and job growth.
  
• Expanding Housing Opportunities: Supported 45,000 affordable housing units, helping many families secure safe homes.
  
• Investing in Underserved Areas: Delivered more than $24 billion in loans and investments to underserved communities.
  
• Leveraging Resources: Attracted about $8 in private capital for every $1 of federal funding, making the program highly efficient.

DCUC stressed that fully restoring the CDFI Fund is imperative. DCUC had cautioned that losing the Fund would have “immediate and severe consequences,” including reduced access to safe financial services and a rise in predatory lending. These threats would particularly affect military families, 80% of whom report financial stress. Financial readiness is mission readiness, and curtailing the Fund’s work would directly harm servicemembers and veterans who rely on CDFI credit unions for their financial well-being.

“We wholeheartedly applaud the rehiring of the CDFI Fund’s dedicated team,” said Anthony Hernandez, DCUC President/CEO. “This decision restores critical capacity to a program that is truly a lifeline for credit unions serving low-income, rural, and military communities. Financial readiness is mission readiness, and today’s action is a crucial step toward preserving our servicemembers’ financial stability and strengthening economic inclusion nationwide.”

Hernandez emphasized that the job is not yet finished. “Now we must go further to fully revive the CDFI Fund’s mission,” he continued. “We urge leaders in Washington to swiftly restore the Fund’s full operations and resources and to move forward with upcoming award cycles so that no community is left behind. This program’s enduring strength is critical for our nation’s financial and military readiness, and DCUC will continue to champion the CDFI Fund until it is on solid footing for the long run.”

In the wake of the staff reinstatement, DCUC is calling for the full restoration of the CDFI Fund’s operations, resources, and future award cycles. DCUC urges Congress and the Administration to provide the necessary funding and policy support to ensure the Fund can resume issuing awards and certifications without further delay.

As an advocate for credit unions and the military communities they serve, DCUC stands ready to collaborate with policymakers and the U.S. Treasury to strengthen the CDFI Fund’s program and ensure its long-term longevity and impact. This advocacy-forward stance reflects DCUC’s commitment to financial inclusion, military readiness, and the economic well-being of underserved Americans