Members of Congress are strongly supporting community development financial institutions in current budget discussions, Politico reported.
Details: The “Morning Money” report notes:
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The Senate Appropriations Committee’s draft spending bill allocates $324 million for the CDFI Fund in fiscal 2026, the same funding level approved for 2025.
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More than 100 congressional Republicans pushed back on a decision to fire CDFI Fund employees during the government shutdown.
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Treasury responded last week that all CDFI Fund reductions in force were rescinded as part of last month’s legislation reopening the government.
Background: A group of 105 Republican senators and representatives in October urged the administration to continue carrying out the statutory obligations of the CDFI Fund, saying that eliminating work done by it could harm the U.S. economy. A group of 120 House Democrats later followed suit, saying the CDFI Fund’s work is vital in supporting families, businesses, and communities that rely on this source of economic empowerment.
ICBA Advocacy:
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ICBA and other groups in October urged the administration to reconsider actions to eliminate CDFI Fund resources, noting it has long stood as one of the government’s most effective market-based strategies for fostering economic opportunity and expanding homeownership in low- and moderate-income communities.
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In a national news release, ICBA cited the harmful economic impact of eliminating the CDFI Fund and urged continued support from policymakers.
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ICBA in March reaffirmed its support for the CDFI Fund in a letter to Bessent and in a joint letter to the Senate CDFI Caucus after President Donald Trump issued an executive order restricting the CDFI Fund to its statutory functions.
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ICBA in April called on congressional appropriators to support $324 million for the CDFI Fund, including a $40 million allocation for the Bank Enterprise Award Program.
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ICBA in August supported four pieces of legislation aimed at strengthening CDFIs that were being considered as an amendment to the National Defense Authorization Act.