The Treasury Department today announced it has begun a review of certified community development financial institutions to identify potential legal violations or violations of CDFI requirements.
Trump administration officials have accused Treasury’s CDFI Fund of pursuing a “woke” agenda by supporting race-based lending and “immigration, gender and climate radicalism.” The White House has called for slashing funding for the program and redirecting the remaining funds to rural communities, but the CDFI Fund has bipartisan support in Congress. Today’s announcement is to ensure CDFIs that receive federal assistance “act as proper stewards of taxpayer funds,” according to a Treasury statement.
“CDFIs that engage in predatory practices and take advantage of the very communities they are intended to serve will be reviewed and, where appropriate, held accountable,” Treasury Secretary Scott Bessent said. “We remain committed to enforcing the law and protecting taxpayer resources while supporting the mission of responsible CDFIs.”
In related news, House lawmakers set aside $276 million for the CDFI Fund in legislation advanced by the House Appropriations Committee last week, according to the CDFI Coalition. The bill also contains a provision requiring Treasury to report CDFI Fund staffing levels to Congress within 30 days of the legislation becoming law. At the same time, at least 43 senators are supporting a proposal to maintain the fund’s current level of funding at roughly $324 million.
