ICBA expressed concerns with actions to dismantle the Community Development Financial Institution Fund following reports of Treasury Department actions to abolish the fund.
ICBA Response: In a national news release, ICBA cited the harmful economic impact that eliminating the CDFI Fund would have on local communities and urged continued support from policymakers.
Positive CDFI Impact: ICBA President and CEO Rebeca Romero Rainey noted that CDFIs financed more than 252,000 small businesses to create or maintain over 2.2 million jobs in a recent five-year period.
Call to Action: “CDFIs are trusted partners in neighborhoods across the country, and their work continues to have strong bipartisan support from Congress,” Romero Rainey said. “We call on policymakers to ensure the work of the CDFI Fund can continue uninterrupted.”
Background: American Banker (subscription needed) 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.