As the nation works to strengthen the economy, the Community Development Financial Institutions Fund is a proven and effective vehicle that directly supports key priorities laid out by the Trump administration, the American Bankers Association and seven associations said in a joint letter to senators.
The CDFI Fund awards millions of dollars to CFDIs that provide affordable financing and related services to low-income communities and populations that lack access to credit, capital and financial services. Last week, President Trump issued an executive order directing the CDFI Fund to reduce its personnel and operations to the minimum needed to meet its statutory obligations. However, Treasury Secretary Scott Bessent said in a statement yesterday that the administration recognizes the role CFDIs play in expanding access to capital and providing technical assistance to communities across the U.S.
In a letter to members of the Senate Community Development Finance Caucus, the associations said more than 1,400 certified CDFIs in all 50 states play a vital role in delivering much-needed capital to entrepreneurs, farmers, manufacturers and small business owners.
“In communities where traditional lending options may be limited, CDFIs provide tailored financial products that allow individuals to start businesses, expand operations, and create jobs,” they said. “These investments build local tax bases, reduce dependence on public assistance and promote economic self-sufficiency — key pillars of the administration’s economic agenda.”
“The CDFI Fund supports the administration’s commitment to putting America First by ensuring that all communities — urban and rural, large and small — have access to the capital necessary to participate in and contribute to our national economy,” they added. “The CDFI Fund is a targeted, accountable and impactful program that enables private capital to do more for more Americans.”
