Federal Reserve Governor Michael Barr today praised the work of community development financial institutions and the CDFI Fund, saying it is staffed with people “whose dedication to expanding economic opportunity was truly inspiring.”
In prerecorded remarks delivered at a financial conference in Washington, D.C., Barr said CDFIs have “a legacy rooted in opportunity, innovation and commitment to communities that have too often been overlooked.” Barr also pointed to his previous career as an official at the Treasury Department, where he worked with CDFI Fund staff. “And over the last three decades, and now at the Federal Reserve, I’ve seen firsthand how CDFIs around the country help small businesses to thrive and communities to prosper,” he said.
The Trump administration is seeking to fire the CDFI Fund’s staff as part of a series of federal workforce reductions in response to the government shutdown. The administration has also called for the elimination of the fund as its activities “do not align with the president’s priorities.” Barr did not address the administration’s plans for the fund but instead pointed to the work of its staff and CDFIs across the country.
“CDFIs have earned their strong track record through performance and results — delivering impact in rural areas, urban neighborhoods and tribal communities across the country,” Barr said. “Demand for their services continues to grow.”
