ICBA and other groups urged the Trump administration to reconsider actions to eliminate Community Development Financial Institutions Fund resources.
Details: In a letter to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought, ICBA and the other groups said:
The CDFI Fund 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.
Since its establishment in 1996, the CDFI Fund has provided the framework through which financial institutions expand access to capital in markets that might otherwise remain underserved. Its programs are invaluable in helping banks and other lenders meet community credit needs, create jobs, and build local wealth.
ICBA Advocacy: In a national news release earlier this month, ICBA cited the harmful economic impact that eliminating the CDFI Fund would have on local communities and urged continued support from policymakers. ICBA is working with key House and Senate offices to weigh in directly with the Treasury and OMB to preserve the successful CDFI programs.
Background: American Banker (subscription needed) 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.
Recent CDFI Developments:
ICBA in March reaffirmed its support for the CDFI Fund in a letter to Treasury Secretary Scott Bessent and 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 it has awarded 56 organizations $8.8 million in technical assistance awards under the fiscal 2025 funding round.