A bipartisan group of 23 senators led by CDFI Caucus Co-chairs Mark Warner (D-Va.) and Mike Crapo (R-Idaho) reaffirmed their support for the Community Development Financial Institutions Fund following a recent executive order from the White House.
Details: Following President Donald Trump’s executive order directing the Treasury Department to eliminate the non-statutory components of the CDFI Fund, the senators noted in a letter to Treasury Secretary Scott Bessent that the CDFI Fund aligns with the Trump administration’s focus on ensuring that federal taxpayer dollars are spent efficiently. The lawmakers noted that the fund’s public-private partnership model enables CDFI banks to leverage their capital and boost economic growth in largely underserved communities that lack traditional access to financing.
Industry Letter to Lawmakers: ICBA and other groups this week expressed strong support for the CDFI Fund in a letter to the bipartisan Senate caucus. The groups noted that the CDFI Fund’s public-private partnership model aligns seamlessly with the Trump administration’s goals of revitalizing American communities, promoting job growth, and reducing regulatory burdens.
ICBA Letter to Treasury: ICBA earlier this week highlighted the critical role that CDFI community banks play in local economies in a letter to Bessent. In that letter, ICBA noted that CDFI community banks are uniquely positioned to serve low- and moderate-income communities, especially in rural areas.
Background: The White House’s executive order says:
The non-statutory components and functions of the CDFI Fund—which is housed under the Treasury Department—shall be eliminated to the maximum extent consistent with applicable law.
The CDFI Fund and other affected entities shall reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law.
The head of each affected entity shall submit a report to the Office of Management and Budget confirming full compliance within seven days.
The Office of Management and Budget or the head of any executive department or agency charged with reviewing grant requests by such entities shall reject funding requests for such governmental entities to the extent they are inconsistent with this order.
Outlook: ICBA will continue actively engaging with the Trump administration, the Treasury Department, and members of Congress to protect the operations of the CDFI Fund.
