Financial Trade Groups Call for Continued CDFI Funding

Six financial trade associations urged Treasury Secretary Scott Bessent and Office of Management and Budget ("OMB") Director Russell Vought to sustain staffing and funding for the Community Development Financial Institutions ("CDFI") Fund, a U.S. Treasury program that promotes access to capital in low- and moderate-income communities.

In a joint letter, the American Bankers Association, Community Development Bankers Association, Independent Community Bankers of America, National Bankers Association, and others emphasized that preserving the Fund's operational capacity is essential to fulfilling its mission of expanding access to credit, supporting small businesses, and promoting homeownership in underserved areas. The Associations asserted that they "represent thousands of FDIC-insured depository institutions and nonbank CDFIs across the country." 

The letter underscores that banks, credit unions, and nonbank CDFIs rely on Treasury-issued CDFI certification as the recognized standard for determining whether an institution effectively serves low-income communities. Maintaining the capacity to administer this certification, they argue, is vital to ensuring that capital continues to reach historically underserved markets.

With more than half of all CDFIs being federally insured depository institutions, the associations warned that any disruption to the Fund's operations could also pose risks to the stability of segments of the financial system. They noted that their members, ranging from large national banks to community lenders, remain committed to safe, sound, and impactful finance and stand ready to work with the Administration and Congress to preserve the Fund’s effectiveness.

The Associations pointed out that appropriated FY 2025 funds remain available through September 2026.