A group of 120 House Democrats urged the Trump administration to protect the Community Development Financial Institutions Fund, saying its work is vital in supporting families, businesses, and communities that rely on this source of economic empowerment.
Details: In a letter to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought, the lawmakers said the CDFI Fund is a vital source of capital and financial services to underserved communities across the United States.
Bipartisan Support: A group of 105 Republican senators and representatives last week strongly urged the administration to continue carrying out the statutory obligations of the CDFI Fund, saying that eliminating work done by the CDFI Fund could harm the U.S. economy.
ICBA Advocacy:
ICBA and other groups last week 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.
In a national news release, ICBA cited the harmful economic impact of eliminating the CDFI Fund and urged continued support from policymakers.
Background: American Banker (subscription required) on Oct. 10 reported that policymakers are moving to abolish the CDFI Fund, though ICBA noted in its statement that a recent Treasury review determined the fund is performing its statutory functions as required by law.
More Developments:
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.
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.
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.
The CDFI Fund last month issued an amended notice of funds availability inviting applications for financial or technical assistance awards with an Oct. 27 deadline.
The fund later announced 56 organizations received $8.8 million in technical assistance awards under the fiscal year 2025 funding round.