According to published reports, the Treasury Department has laid off the entire staff of the Community Development Financial Institutions (CDFI) Fund.
A spokesman for the White House Office of Management and Budget (OMB) confirmed for several media outlets that the cuts had started and are going to be “substantial.”
“The RIFs have begun,” OMB Director Russell Vought announced in a post on X.
The CDFI Fund supports credit unions serving low-income and underserved areas through grants, certifications, and access to capital.
Industry Response and Potential Fallout
“We have seen reports that the Treasury RIF has eliminated all CDFI Fund staff,” America’s Credit Unions’ President and CEO Jim Nussle said in a statement reported in the Credit Union Times. “After a win in the Senate-passed NDAA, cutting this staff would effectively cease the operations of the fund and significantly impact CDFI credit unions and communities across the country. We urge Congress to swiftly come to an agreement on funding, and will monitor the RIF impact on credit unions and their members.”
“Catalyzing at least $8 in private funding for every federal dollar, the CDFI Fund has earned strong bipartisan support for its effective use of federal funds,” Inclusiv said in a statement.
In addition to the staff layoffs, CDFI funding that’s already been appropriated could be subject to being cut off via a “pocket recission,” in which the president proposes canceling congressionally appropriated funds so close to their expiration date that Congress cannot respond in time.
By doing this, the president ensures the funds lapse and return to the Treasury, regardless of congressional intent. The Administration has already put on hold previously approved funding for other programs. A pocket recission would likely be challenged in court.
Particularly hard hit by the layoffs beyond the staff itself, could be Native American lenders, according to Tribal News.
The Treasury Department’s website has no announcement or other information regarding the CDFI Fund staff, saying the site will only be updated sporadically during the shutdown.
