Executive order restricts CDFI Fund to statutory functions

President Donald Trump issued an executive order restricting the Community Development Financial Institutions Fund and some other federal programs to their statutory components and functions.

Details: The EO says:

• The non-statutory components and functions of the CDFI Fund—which is housed under the Treasury Department—shall be eliminated to the maximum extent consistent with applicable law.

• The CDFI Fund and other affected entities shall reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law.

• The head of each affected entity shall submit a report to the Office of Management and Budget confirming full compliance within seven days.

• The Office of Management and Budget or the head of any executive department or agency charged with reviewing grant requests by such entities shall reject funding requests for such governmental entities to the extent they are inconsistent with this order.

ICBA Engagement: ICBA is actively engaging Treasury and members of Congress to protect the operations of the CDFI Fund because CDFIs are crucial community banks that continue to leverage their capital to underserved and rural parts of the country.