Processing Content Key insight: Treasury Secretary Scott Bessent backed the president’s call in his 2027 budget for a 60% reduction to the Community Development Financial Institution Fund, arguing it had a “partisan agenda.” Supporting data: The president’s budget cut more than $204.5 million from the fund’s budget for fiscal year 2027. Expert quote: “They’re sustaining […]
Bessent says CDFI Fund ‘had lost its way’ Read More »
Key insight: The White House budget would cut funding from the Community Development Financial Institution Fund, as Vought outlined in a House Budget hearing. Forward look: The program historically has broad bipartisan support in Congress, including a large number of Republicans, but OMB can cause delays in disbursing CDFI funding, even if Congress fully funds
OMB’s Vought: CDFIs funded ‘woke’ programs Read More »
Key insight: The Trump administration’s budget proposes a $204.5 million cut to the Treasury Department’s Community Development Financial Institution Fund, and would redirect remaining awards to rural areas. What’s at stake: The proposal reflects months of conflict between the Office and Management and Budget and Treasury over the fund’s future, with OMB withholding congressionally appropriated
Trump budget includes cuts to CDFI Fund Read More »
Key insight: WomenVenture, a Minneapolis-based Community Development Financial Institution, has assisted 108 small businesses seeking emergency assistance as federal immigration enforcement operations strain revenues and workforces across Minnesota. Forward look: The organization is establishing an emergency rapid response fund with other Minnesota CDFIs and community foundations, while navigating uncertainty around the CDFI Fund, which provides
How one CDFI is navigating the chaos in Minneapolis Read More »
Al Drago/Bloomberg Key insight: Federal Reserve Governor Michael Barr said the short-term impact of AI-related job cuts will likely lead to long-term economic gains, as new technology may create new jobs with higher pay. He also said the central bank is working to bring inflation back to its 2% target but noted there is “some
Fed Gov. Barr says AI may cause ‘dislocations’ in labor force Read More »
Key insight: The trade association letter urges the White House to reverse cuts to the congressionally mandated program. Supporting data: The Office of Management and Budget has let go CDFI Fund staff as part of a reduction in force across the government, and the administration has singled out the program for cuts to the extent
Banks urge Trump admin to restore CDFI Fund staff, funding Read More »
Key insight: Treasury said it will abolish the CDFI Fund in reduction in force notices handed out to employees on Friday. Forward look: The CDFI funding that’s already been appropriated could be subject to what’s called a “pocket recession,” a move likely to be legally challenged. What’s at stake: Millions of dollars for banks and
Exclusive: Trump admin lays off Treasury CDFI staff Read More »
Key insight: The CDFI Fund is getting a supplemental application, putting it back on track to receive the funding apportioned by Congress. Look forward: But the Office of Management and Budget hasn’t given a timeline for when those funds will be disbursed, raising fears once again of pocket rescission. What’s at stake: Millions of dollars
CDFIs get a reprieve. Sort of. Read More »
Al Drago/Bloomberg WASHINGTON — The Office of Management and Budget has apportioned a fraction of the money Congress allotted to the Community Development Financial Institution Fund, documents show. OMB has allotted only $35 million under the Trump administration to the CDFI program, according to new apportionment documents. All of those funds have gone to cover
OMB documents show CDFI Fund isn’t disbursing new funds Read More »
Annabelle Gordon/Bloomberg Advocates for military credit unions Tuesday urged top lawmakers on a senate appropriations subcommittee to restore funding for the Community Development Financial Institutions Fund, after the White House proposed eliminating new funding. In the letter, addressed to Financial Services and General Government Subcommittee Chair Bill Hagerty, R-Tenn., and Ranking Member Jack Reed, D-R.I.,
Military credit union group urges Congress to fund CDFIs Read More »