More than 100 Republican lawmakers have signed a letter requesting the Trump administration continue to carry out the statutory obligations of the Community Development Financial Institutions Fund, which administration officials have proposed eliminating.
The Office of Management and Budget recently sent termination letters to CDFI Fund staff as part of a broader federal workforce reduction push in response to the government shutdown. Administration officials have also suggested eliminating the fund, saying its mission isn’t aligned with President Trump’s priorities.
In a letter spearheaded by Sen. Mike Crapo (R-Idaho) and Rep. Young Kim (R-Calif.), the signatories said CDFIs “play an important role in supporting economic development in rural and underserved communities in our states.” They pointed to investments in CDFIs made during Trump’s first term and noted that the recently enacted One Big Beautiful Bill Act made permanent the New Markets Tax Credit Program, which the fund oversees. They also said CDFIs are essential to expanding the nation’s housing supply.
“While we understand difficult decisions must be made amid the ongoing Democratic government shutdown and our nation’s unsustainable fiscal trajectory, eliminating all work done by the CDFI Fund will negatively impact our economy long-term,” the lawmakers said. “We stand ready to work with the administration to make additional improvements at the fund to ensure it fulfills its purpose of serving communities left behind by the federal government and the traditional finance sector.”
