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

Construction spending decreased 0.3% in May

ABA DataBank: Continued weakness in May housing starts

Economy
June 16, 2026

Continued low construction activity could further reduce demand for construction loans. With building permits coming in only slightly below April’s rate, May’s sharp decline in housing starts could just be a temporary setback.

Bessent: Trump administration recognizes CDFI Fund’s ‘important role’ in communities

Former comptrollers warn against state erosion of federal banking powers

Newsbytes
June 15, 2026

States are increasingly seeking to regulate activities that have historically fallen within the domain of federal supervision, and that threatens the regulatory clarity the nation's dual banking system has long provided, two former comptrollers of the currency write...

Consumers turn to credit cards, home equity to maintain financial stability

Survey: Younger couples value financial independence from partners

Economy
June 15, 2026

Young couples are more likely to embrace financial independence from their partners by maintaining separate bank accounts, according to a recent survey by Fidelity.

Industrial production rose in March

Industrial production rose 0.1% in May

Economy
June 15, 2026

Industrial production increased 0.1% in May after increasing 0.9% in April. In May, manufacturing output was unchanged, the index for mining rose 1.3%, and utilities decreased 0.4%.

Bank, credit union groups unite against Welch-Gooden bill

ABA Viewpoint: Higher upfront APRs were a policy choice

Policy
June 15, 2026

Three key choices by lawmakers and regulators pushed credit card pricing toward higher annual percentage rates. Rate caps would have even more unintended consequences for consumers.

ABA urges FinCEN to reevaluate BOI collection burden on banks

FinCEN updates guidance for financial institutions on sharing information about fraud

Compliance and Risk
June 12, 2026

FinCEN issued an updated fact sheet to clarify how financial institutions can share information with each other about suspected fraud under the provisions of the USA PATRIOT Act.

NEWSBYTES

ABA DataBank: Continued weakness in May housing starts

June 16, 2026

Former comptrollers warn against state erosion of federal banking powers

June 15, 2026

Survey: Younger couples value financial independence from partners

June 15, 2026

SPONSORED CONTENT

Why Your Systems Keep Slowing Down — and What to Do About It

Examiners Are Now Looking at Your Non-Core Systems

June 11, 2026
Your Floorplan Audit and Your Credit Decision Are Weeks Apart. That Gap Has a Price.

Your Floorplan Audit and Your Credit Decision Are Weeks Apart. That Gap Has a Price.

June 1, 2026
A Modern Blueprint for Serving High-Net-Worth Families

A Modern Blueprint for Serving High-Net-Worth Families

May 28, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

AI Is in Your Bank. Is Your Cloud Contract Governing It?

May 20, 2026

PODCASTS

Podcast: Understanding bank regulators’ guidance on illegal immigration

June 11, 2026

Podcast: Creating a feeling of welcome, for customers and new bankers

May 28, 2026

Podcast: How consumer deposits drive full relationship banking

May 14, 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.