House Democrats urge Treasury to exempt CDFI Fund from cuts

House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) and 87 House Democrats asked Treasury Secretary Scott Bessent to exclude the CDFI Fund from a recent executive order directing it to scale back operations.

Details: In a letter, the lawmakers said they “reject the premise that anything about the CDFI Fund and the CDFIs it supports is unnecessary” and requested the administration immediately exempt the CDFI Fund from the EO. They noted that for more than 30 years, the CDFI Fund has provided grants, technical assistance, and other support to community banks and others that are certified as CDFIs to provide financial access to underserved communities.

Background: President Trump on March 14 issued an EO directing the Treasury Department to eliminate the non-statutory components of the CDFI Fund. The Treasury Department on March 21 reportedly told the Office of Management and Budget that all 11 CDFI Fund programs are required by law.

ICBA Support: ICBA recently:

• Reaffirmed its support for the CDFI Fund in a letter to Secretary Bessent and a joint letter to the Senate CDFI Caucus.

• Said it will continue actively engaging with the Trump administration, the Treasury Department, and members of Congress to protect the operations of the CDFI Fund.

• Called on congressional appropriators to support $324 million for the CDFI Fund, including a $40 million allocation for the Bank Enterprise Award Program.