A group of 105 Republican senators and representatives strongly urged the Trump administration to continue carrying out the statutory obligations of the Community Development Financial Institutions Fund.

Details: In an ICBA-supported letter to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought, 26 senators and 79 representatives said:

  • CDFIs play an important role in supporting economic development in rural and underserved communities.

  • It is unclear how CDFI Fund programs will continue to operate if the fund’s obligations cease to function.

  • Eliminating all work done by the CDFI Fund harm the U.S. economy long-term.

More ICBA Advocacy:

  • ICBA and other groups this week urged the Trump 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 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.

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.

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 56 organizations received $8.8 million in technical assistance awards under the fiscal 2025 funding round.