The Trump administration has begun releasing 2025 funding for the Community Development Financial Institutions Fund that had been held up since it was appropriated by Congress.
Funding Release: As reported by Politico, the White House’s Office of Management and Budget has begun to release the $289 million in funds approved by Congress for fiscal 2025, as advocated by ICBA. The funding for the two-year cycle was scheduled to expire Sept. 30.
New CDFI Rulemakings: The news came as the Treasury Department separately announced:
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The CDFI Fund will issue rules designed to prevent funding from going to immigrants in the country illegally.
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It is adding a new provision to CDFI Fund agreements to ensure certified CDFIs do not engage in practices that violate federal anti-discrimination law.
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The anti-discrimination standards will require certified CDFIs to implement policies and procedures to ensure compliance, certify these policies each year, and make them available for review upon request by the CDFI Fund.
2027 Budget Proposal: President Donald Trump’s 2027 budget proposal calls for cutting $204.5 million in discretionary awards from the CDFI Fund, though the president’s budget is a nonbinding recommendation to Congress.
ICBA View: ICBA has persistently worked to ensure full funding for the CDFI Fund amid efforts to cut its resources, citing the important role of CDFIs in supporting economic development in rural and underserved communities.
ICBA Advocacy:
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The Consolidated Appropriations Act (H.R. 7148) signed into law in February allocates $324 million for the CDFI Fund this year, the same amount as 2025.
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Following advocacy from ICBA and other groups, members of Congress in December strongly supported CDFIs in budget discussions.
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More than 100 congressional Republicans last year pushed back on a decision to fire CDFI Fund employees during the government shutdown.
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The Treasury Department responded that all CDFI Fund reductions in force were rescinded as part of November's legislation reopening the government.
More: A recent Independent Banker magazine article details how CDFIs and minority depository institutions weather potential funding cuts and regulatory shifts and continue to help underserved communities.