Beyond the Turbulence: CDFIs Continue to Deliver

On Oct. 10, 2025, the CDFI Fund’s staff, most of whom were already furloughed, received Reduction in Force notices. It was an unsettling moment for credit unions that built strategic plans around CDFI certification and grant funding. Yet as in all periods of political turbulence, this is a time to keep perspective.

As Douglas Adams reminded readers of The Hitchhiker’s Guide to the Galaxy, sometimes the best response to chaos is to remember the words printed in large, friendly letters on the book’s cover: “DON’T PANIC.”

It’s easy to feel overwhelmed by the uncertainty in Washington. But even now, new data and steady leadership tell a different story: one of proven impact, financial strength, and lasting community value.

The Data Tell a Clear Story

New research from the Filene Research Institute, supported by CU Strategic Planning, offers compelling evidence that the CDFI Fund’s work remains vital. Analyzing more than 4,700 credit unions between 2000 and 2023, Filene found that CDFI credit unions outperform their peers across nearly every financial metric.

For the fiscally minded, CDFI credit unions experience higher ROA and ROE than their non-CDFI counterparts. They also saw higher asset growth and nearly doubled their member growth compared to non-CDFIs.

CDFI credit unions are putting certification and grant funds to good use. Among the results:

• Loan volume nearly 50% higher than non-certified credit unions

• Programs designed for populations abandoned by traditional lenders

• Economic ripple effects—creating jobs and growing local tax bases

• Measurable improvements in financial inclusion and wealth building

In other words, the data prove what the movement has long known: CDFI credit unions fulfill the CDFI Fund’s mission, and that mission benefits all of American society.

What’s Actually Frozen

The Fund’s current suspension appears to be part of a broader strategy to pressure Congress toward a funding agreement. While government shutdowns aren’t new, the scope of this one is unprecedented. Treasury is believed to have issued more than 1,400 RIF notices agency-wide.

The CDFI Fund, despite being highly favored by Republicans as well as Democrats, is caught in a larger political struggle over budgets, priorities, and administrative philosophy. But its longtime support hasn’t spared it from tangible impacts: credit unions can’t apply for new grants, existing awards aren’t being processed, technical assistance is on hold, and thoughtful recertification applications remain in limbo.

For the communities we serve, those delays matter. As the Richmond Fed’s 2025 Biennial CDFI Survey highlighted, CDFI programs currently at risk include payday loan alternatives at Innovations Federal Credit Union, affordable housing initiatives at NOFFCU, disaster recovery loans at JetStream Federal Credit Union, microbusiness lending, and financial counseling programs with 100% staff certification.

These aren’t abstract policy experiments. They are real, measurable solutions that create stability, mobility, and growth for working families.

Steady Progress and Bipartisan Signals

On October 15, Senator Mike Crapo (R–ID) and Representative Young Kim (R–CA) released a draft letter supporting the CDFI Fund addressed to Treasury Secretary Bessent and OMB Director Vought. They are now circulating it among Congressional Republicans for signature.

This is an encouraging step, that the majority party is sending a message advocating for

the CDFI Fund’s role in strengthening small businesses, creating jobs, and expanding access to affordable credit. Washington knows that CDFIs matter.

Strategic Considerations for Credit Unions

Periods of political uncertainty are not the time to retreat; they are the time to remain informed, engaged, and ready. Credit union leaders can make an impact:

• Recognize the long game. The CDFI Fund and the credit union movement have weathered many storms. The path forward depends on steady, sustained engagement.

• Stay connected through CDFI networks. Visit the CDFI Coalition to access advocacy tools and updates on how to contact your representatives.

• Tap bipartisan relationships. CDFI funding has historically enjoyed support across party lines. Remind policymakers that economic development, job creation, and community resilience are shared priorities.

• Localize your message. National data matter less than local impact. Document the number of jobs created, homes financed, and businesses supported in your communities.

• Share member stories. A small business owner who got a loan when others said no, or a family that purchased its first home, demonstrates CDFIs’ value more powerfully than any spreadsheet.

• Coordinate messaging. State leagues have longstanding relationships with legislators and can amplify credit union voices effectively.

These steps aren’t about alarm—they’re about readiness. Advocacy, after all, is not a sprint but a steady journey.

The Path Forward

The story of CDFIs is one of resilience and is the story of credit unions themselves. Over decades, credit unions have proven that mission and margin are not opposing forces but complementary strengths. The data back it up. The communities affirm it.

The current challenges facing the CDFI Fund reflect politics, not performance. And while politics may create turbulence, the mission of CDFI credit unions—financial inclusion, opportunity, and shared prosperity—remains steady.

Like travelers consulting The Hitchhiker’s Guide to the Galaxy, it helps to remember those reassuring words: “DON’T PANIC.”

The CDFI credit union movement has navigated uncertainty before and emerged stronger every time. The data, the impact, and the people we serve all point forward to a future that remains, even now, full of possibility.

CU Strategic Planning supports credit unions in becoming CDFI certified or recertified, earning financial and technical awards, and using those funds wisely. Contact us to discuss how your credit union can effectively engage in this critical conversation.