Last week, congressional offices contacted California’s Credit Unions and Nevada’s Credit Unions to share that the U.S. Treasury Department is undergoing a “Reduction in Force” (RIF) plan. This means staff layoffs are expected.
Unfortunately, the Community Development Financial Institutions (CDFI) Fund and staff are being immediately impacted. Nearly all 100-plus staff in the program are being let go, with some staying until December 13.
Inclusiv is a partner working with the California and Nevada leagues on advancing legislative strategies to address this unfortunate circumstance. Many CDFI credit unions are members of other coalitions that will likely respond to this development.
The California and Nevada leagues will share with credit unions all updates as they receive them. For questions or concerns, please email Stephanie Cuevas, Senior Vice President of Federal Advocacy, and Amanda Merz, Vice President of Social Impact.
Rep. Young Kim (R-CA) and Sen. Mark Crapo (R-ID) are leading an effort to tout the importance of the U.S. Treasury Department’s CDFI Fund in a bicameral message to Treasury Secretary Scott Bessent and Office of Management and Budget (OMB) Director Russell Vought. California’s Credit Unions, Nevada’s Credit Unions, Inclusiv, and America’s Credit Unions have joined their efforts to lead the credit union industry to garner additional support by urging lawmakers to sign on to the letter.
The letter stresses the importance of CDFIs to economic development in rural and underserved communities, asking the administration to carry out the statutory obligations of the CDFI Fund.
This is part of a coordinated effort to reverse the impact of the recent reduction in force (RIF) of the CDFI staff. Following last week’s announcement of the RIF, America’s Credit Unions sent letters outlining the potential negative impact on the communities it serves if the CDFI Fund is terminated.
Crapo stated he is “discouraged to see the actions taken to (RIF) the employees, and I’m hopeful that we can get that turned around,” as reported in Politico. Sens. Sen. Mark Warner (D-VA) and Mike Rounds (R-SD) have also been vocal in their support for the fund. Crapo and Warner co-chair the Senate Community Development Finance Caucus.
The California and Nevada leagues — together with Inclusiv and America’s Credit Unions — remain focused on driving continued emphasis of the CDFI Fund’s positive impact.
