CU Strategic Planning Welcomes Introduction of Bipartisan AFFORD Act

Stacy Augustine

​CU Strategic Planning, a Callahan company dedicated to supporting mission-driven credit unions, welcomed the introduction of a new Senate bill aimed at strengthening Community Development Financial Institutions (CDFIs) and improving oversight of the CDFI Fund ahead of America’s Credit Unions Governmental Affairs Conference.

The bipartisan Advancing Financial Opportunities through Revitalizing and Developing CDFIs (AFFORD) Act, introduced by Senators Steve Daines (R-MT) and Mark Warner (D-VA), gained 28 additional Senate co-sponsors.

The legislation incorporates elements from several previously introduced bills, and of significant importance to CDFI credit unions is the CDFI Fund Transparency Act (S. 2704), which requires the Secretary of the Treasury to testify annually before the Senate Banking and House Financial Services Committees on CDFI Fund operations.

"The provisions of the bill that require the Secretary of the Treasury to testify annually before Congress both create greater transparency and allow the CDFI Fund to better communicate how CDFIs have a powerful impact on their communities," CU Strategic Planning President Stacy Augustine said.

Mike Beall, CU Strategic Planning’s Chief Experience Officer, added, “The AFFORD Act makes it a priority that the CDFI Fund report to Congress annually and testify before Congress on how the CDFI Fund is implementing the programs that are founded in statute. We welcome this action and look forward to conversations on how the program is operating and to develop ways for it to accomplish even more with the funds it has be appropriated.

Why Transparency Matters
Beall elaborated, “We urge Congress to be aware of the regulatory burdens being created by the CDFI recertification process that create an environment where credit union lose or walk away from the CDFI certification.”

CDFIs, he pointed out, are currently required to make 60% of the number of loans and 60% of the dollar amount of loans in their target market area. Beall added that this requirement should be reviewed, “to eliminate unintended consequences that may see the number of credit union CDFIs fall sharply in 2026. 
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“It is possible for a credit union CDFI to lend more than 70% of the total number of loans to its target market of Low-Income Targeted Populations and Investment Areas and still not qualify as a CDFI because of the dollar-size of loans to a minority of members who are not in the target market.” 

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