Late Friday October 10th, multiple outlets reported that the administration has begun reduction-in-force (RIF) layoffs across federal agencies as part of the ongoing shutdown. Reporting indicates that the Department of the Treasury's CDFI Fund is among the affected agencies, and America's Credit Unions specifically reports that RIF notices were issued to all Fund staff. According to Tribal Business News the termination notices are effective December 13, 2025. This is another instance that the current administration has tried to undermine the CDFI Fund.
At CUCollaborate, we see this as a temporary setback rather than an official termination of the Fund. This may not be the last time that we experience setbacks from this administration, but it does not mean that we will stop advocating for this crucial program. Just recently there was bi-partisan support with the recent effort to include key (CDFI) provisions in the Fiscal Year 2026 National Defense Authorization Act (NDAA). One thing for sure is that now is not a time to be silent!
Advocacy is a crucial next step that needs to be a continuous approach to ensure the benefits of the CDFI Fund continue to support underbanked and underserved communities. When setbacks like this effect Credit Unions and their members, the first thing that comes to mind is what can I do next to help advocate for better policies and better practices. Here are some recommendations of where I would start:
Credit Union Leagues: The leagues are often at the forefront of advocacy for the credit union movement and can provide you with resources like templated messaging for congressional outreach and joint advocacy efforts that you can sign on to and support. We will be hosting a townhall focused on advocacy before the midterms and what actions your Credit Union can be taking on October 23 at 2:00 p.m. ET to discuss what actions your credit union can be taking now as well as in the future to advocate for crucial programs like CDFI. We hope this provides you a platform to discuss with your peers and advocacy leaders around next steps. You can register for that here.
Leverage Your Partners: Partners like CUCollaborate and America's Credit Unions are actively monitoring the situation and building contingency plans for all scenarios. These organizations can act as a trusted resource to help you navigate an ever-changing political climate as well as provide you with recommendations for your specific credit union.
Opportunity Finance Network's portal- Use to easily reach out to the Treasury to advocate for a reversal of the RIF. https://www.ofn.org/ofn-policy-action-center/
We will continue to monitor the situation and are available to support our clients and those affected by this change to the CDFI program to the best of our ability.
Collaboratively,
Sam Brownell
Founder & CEO
CUCollaborate
CDFI Fund
