Reports indicate that the Treasury RIF has eliminated all CDFI Fund staff.
According to POLITICO, the Treasury Department alone was preparing to terminate roughly 1,400 employees Friday under White House direction. The confirmation came as White House Budget Director Russell Vought declared on social media that “the RIFs have begun,” a message later confirmed by the Office of Management and Budget. Bloomberg Law reported that thousands of additional layoffs were underway across multiple departments, including Health and Human Services and Commerce, and described the firings as the administration’s latest effort to make the shutdown “as painful as possible” for Democratic constituencies.
News reports Saturday put the number of fired workers at 4,000.
Jason Stverak
For credit unions—especially those serving military families and federal workers—the mass terminations mark a critical shift in the ongoing shutdown crisis.
“Since before the shutdown began, DCUC has been working closely with its member credit unions to ensure that anyone affected receives the help they need,” said Jason Stverak, chief advocacy officer at the Defense Credit Union Council. “If you’ve been impacted or have concerns about how this might affect you financially, reach out to your credit union—they’re ready to assist during these uncertain times.”
Stverak said he doesn’t see the firings as political theater but as an extension of what the administration had warned from the start.
“The administration was clear that layoffs could occur if the shutdown continued. I’m not shocked or surprised we’ve reached this point as we enter week three,” he said.
America’s Credit Unions President/CEO Jim Nussle is warning that the effects of the federal government shutdown are intensifying as layoffs spread across multiple agencies, urging swift congressional action and continued credit union support for affected members.
"The consequences of the shutdown are ramping up. As they have demonstrated since before the shutdown began, credit unions across the country are working however they can to support their members through this hard time," said Nussle. "We will continue to provide insights and resources to credit unions to help them effectively support their members, and we encourage federal workers and those impacted to reach out to their local credit unions to see what kind of support may be available.
Jim Nussle
“We have seen reports that the Treasury RIF has eliminated all CDFI Fund staff. 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,” said Nussle.
Stverak said DCUC is "disheartened" to see reports that employees of the CDFI Fund—who administer and oversee critical community development programs—have been terminated due to the government shutdown.
"This underscores the urgent need for Congress to resolve the funding impasse as soon as possible. Defense credit unions and others rely on the CDFI Fund’s support to continue serving underserved communities across the nation," Stverak said.
Treasury said elimination of positions in the fund were “necessary to implement the abolishment of the CDFI, which is based upon the Department of the Treasury determination that its programs, projects, and activities do not align with the President’s priorities,” according to a letter sent by Treasury Department Associate Chief Human Capital Officer Michael Wenzler to CDFI Fund employees and obtained by POLITICO, the news outlet said.
Financial Stability Concerns Mount
CUToday.info reported Friday—ahead of the RIF announcements—that experts were already warning the potential layoffs could weaken regulatory oversight and increase systemic risk across the financial system. In that report, TurmaFinTech CEO Adam Turmakhan cautioned that “slashing capacity at key regulators will only leave more room for risk,” potentially setting the stage for another banking crisis.
The concern stems from a confluence of staffing losses, policy rollbacks, and economic pressure points. Turmakhan pointed to the 2023 collapses of Silicon Valley Bank and Signature Bank as examples of how quickly market confidence can unravel when supervision lags.
Adam Turmakhan
“Federal layoffs at critical watchdogs could bring about another crisis of a similar, if not greater, magnitude,” he said.
Regulatory experts echoed that view. Brandy Bruyere, partner at Honigman LLP, said that even before the layoffs, “financial institution regulators have already lost people with significant tenure and knowledge.” She warned that fewer examiners and reduced oversight could stretch risk management resources and delay early intervention when institutions begin to struggle.
Uncertainty for NCUA and Credit Unions
CUToday.info previously reached out to NCUA to determine whether its independent funding structure might shield the agency from RIF directives, but the agency has not responded.
With thousands of federal employees now facing unemployment and no immediate end to the shutdown in sight, credit unions are once again serving as financial first responders. Across the country, institutions are rolling out emergency loan programs, skip-a-pay options, and hardship relief to help affected members cover basic expenses.
For now, experts say, the scale of the layoffs—and their ripple effects—remain uncertain.
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