Republican Lawmakers Urge Treasury to Maintain CDFI Fund

Over 100 U.S. Republican senators and representatives urged the U.S. Department of the Treasury and Office of Management and Budget to continue to support and fund the Community Development Financial Institutions Fund ("CDFI").

In their letter, the lawmakers highlighted the Fund’s importance in addressing the national housing shortage through the Capital Magnet Fund and the Low-Income Housing Tax Credit—both key to expanding the affordable housing supply. They argued that "eliminating all work done by the CDFI Fund will negatively impact our economy long-term." They urged the Administration to maintain the Fund’s statutory obligations, calling it essential to ensuring that capital continues to reach communities "left behind by the federal government and the traditional finance sector."

The legislators emphasized that the CDFI Fund plays a vital role in driving investment to rural, tribal, and underserved communities. They noted that it supports economic growth through flexible financing tools and public-private partnerships. The lawmakers cited more than $7.4 billion in awards to financial institutions and community organizations, $76 billion in allocations under the New Markets Tax Credit Program, and $2.5 billion in bond guarantees that have supported job creation and small-business growth.