ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Community Banking

Lawmakers defend CDFI Fund after staff layoffs

October 15, 2025
Reading Time: 2 mins read
ABA unveils key policy priorities for 2025

Republican and Democratic lawmakers expressed support for the Community Development Financial Institutions Fund following media reports that the Trump administration has laid off the program’s staff.

The Office of Management and Budget reportedly sent reduction-in-force notices to CDFI Fund staff informing them that their positions are being terminated as the program’s mission is inconsistent with President Trump’s priorities. The White House has proposed eliminating the fund’s ability to allocate discretionary awards, with the administration stating that award factors such as advancing racial equality “framed American society as inherently oppressive rather than fostering unity.”

Sen. Mike Crapo (R-Idaho) — who co-chairs the bipartisan Senate CDFI Caucus with Sen. Mark Warner (D-Va.) — told Politico that he was discouraged about the firings, “and I’m hopeful that we can get that turned around.” Sen. Mike Rounds (R-S.D.) told the publication that he fully supports the CDFI Fund and that “CDFIs do an excellent job in particular areas” and he’s “seen it firsthand in South Dakota.”

The CDFI Fund was created by Congress and is funded through congressional appropriation. Warner raised questions about the legality of the firings in a call with reporters, according to American Banker.

“The idea that an OMB director can just unilaterally lay off its entire staff seems to me to go completely against the law and the purpose of the law,” Warner said.

In a statement, House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) called the firings “unprecedented and unconstitutional,” and said committee Democrats will oppose the OMB’s decision.

“Without this much-needed program, people in rural and urban communities alike will lose access to the capital and other essential resources that only CDFIs provide,” she said.

Court temporarily blocks firings

In related news, a federal judge in San Francisco today issued a temporary restraining order preventing the Trump administration from firing more than 4,000 federal workers during the government shutdown, including staff at the Treasury Department, which houses the CDFI Fund.

Two unions representing federal workers — the American Federation of Government Employees and the American Federation of State, County and Municipal Employees — filed a lawsuit arguing that the OMB violated the law by threatening to fire federal workers during the shutdown. U.S. District Court Judge Susan Illston granted the plaintiffs a temporary restraining order preventing the administration from enforcing the layoffs, labeling the OMB action “both illegal and in excess of authority and is arbitrary and capricious,” according to NPR.

The Trump administration has argued the court lacks jurisdiction to consider the case.

Tags: CDFICommunity developmentCongress
ShareTweetPin

Related Posts

ABA unveils key policy priorities for 2025

House committee advances ABA-backed bill to overhaul bank regulation

Community Banking
March 4, 2026

The House Financial Services Committee advanced legislation to boost community banking by raising regulatory thresholds, revising agency supervisory practices, tailoring regulations further, encouraging de novo banks and strengthening community development financial institutions.

Bank community engagement: Yes, you can help bank veterans

VA proposes updated policy documents establishing new partial claim option

Mortgage
March 4, 2026

The Department of Veterans Affairs released draft policy documents to implement a new partial claim option for borrowers with VA-guaranteed loans who are experiencing financial hardship.

ABA files amicus brief urging Tenth Circuit to affirm dismissal of Custodia Bank’s lawsuit over master account

ABA: Fed decision grants crypto firm payment account creates risks for consumers

Newsbytes
March 4, 2026

Kraken Financial has been granted a one-year, limited-purpose master account by the Kansas City Fed, the first crypto firm to be granted an account. Making the decision while crypto regulations are still under consideration creates serious risk for...

New infographics provide advice for identifying money mules, check fraud

ABA, CBA offer plan for Fed to wind down paper check services

Compliance and Risk
March 4, 2026

The Federal Reserve should adopt a long-term approach to phasing out its check services by encouraging electronic payment alternatives, and it should discontinue select paper check services that can be eliminated without causing unnecessary pain, ABA and the...

ABA congratulates Warsh on Fed chair nomination

Trump formally nominates Warsh to be Fed chair

Newsbytes
March 4, 2026

President Trump formally submitted to the Senate the nomination of Kevin Warsh to be the next chair of the Federal Reserve. Trump first announced Warsh as his nominee in January.

New York Fed: More people searching for jobs

ADP: 63,000 jobs added in February

Economy
March 4, 2026

The nonfarm private sector added 63,000 jobs in February, and annual pay was up 4.5% year-over-year, according to the ADP National Employment Report. This follows a downward revision of January’s report from 22,000 jobs to 11,000.

NEWSBYTES

House committee advances ABA-backed bill to overhaul bank regulation

March 4, 2026

VA proposes updated policy documents establishing new partial claim option

March 4, 2026

ABA: Fed decision grants crypto firm payment account creates risks for consumers

March 4, 2026

SPONSORED CONTENT

How top agricultural lenders are approaching AI, automation and innovation in 2026

How top agricultural lenders are approaching AI, automation and innovation in 2026

March 2, 2026
Top 7 FP&A Trends in Banking for 2026

Top 7 FP&A Trends in Banking for 2026

March 1, 2026
How Instant Payments Can Accelerate B2B Payments Modernization

How Instant Payments Can Accelerate B2B Payments Modernization

February 3, 2026
Digital Banking: The Gateway to Customer Growth and Competitive Differentiation

Digital Banking: The Gateway to Customer Growth and Competitive Differentiation

February 1, 2026

PODCASTS

Podcast: How the SCAM Act would encourage platforms to go after scammers

February 4, 2026

A new kind of ‘community bank’ for small businesses

January 22, 2026

Podcast: A Lone Star banking perspective

January 15, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.