ICBA said it supports the administration's efforts to reduce waste, fraud, and abuse but has concerns about burdens on community banks and negative effects on community development financial institutions.
Details: In a letter to the Office of Management and Budget regarding its efforts to improve transparency and accountability in federal grantmaking and ensuring taxpayer dollars are used effectively, ICBA:
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Noted changes that would contravene Congress's intent.
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Highlighted how specific changes would burden community banks.
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Cautioned about reforms that could discourage community banks from CDFI certification.
Recent CDFI Developments:
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The CDFI Fund this month opened the 2026 application rounds for several programs.
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The Treasury Department in April announced it has initiated a review of certified community development financial institutions to identify potential violations of applicable law or CDFI requirements.
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As advocated by ICBA, the Trump administration this spring began releasing 2025 funding for the CDFI Fund that had been held up since it was appropriated by Congress.
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The Consolidated Appropriations Act enacted in February allocated $324 million for the CDFI Fund this year, the same amount as 2025.
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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 Support: ICBA has persistently worked to ensure full funding for the CDFI Fund amid efforts to cut its resources. 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.