More than 100 Republican lawmakers are urging the Trump Administration to maintain the Community Development Financial Institutions (CDFI) Fund, following reports that officials have proposed phasing out the program as part of broader federal workforce reductions.
In a letter led by Sen. Mike Crapo (R-Idaho) and Rep. Young Kim (R-Calif.), lawmakers highlighted the Fund’s long-standing role in driving investment and economic opportunity in rural, tribal, and underserved communities. Since its creation more than 30 years ago, the CDFI Fund has:
– Awarded $7.4 billion through grants and financial assistance programs,
– Allocated $76 billion in tax credits under the New Markets Tax Credit (NMTC)
Program, and
– Guaranteed nearly $2.5 billion in bonds through the CDFI Bond Guarantee Program.
Lawmakers noted that these programs—along with the Capital Magnet Fund and the recently made-permanent NMTC under the One Big Beautiful Bill Act—help expand small-business financing and support the development of affordable housing nationwide.
“The CDFI Fund is an engine for our economy and a springboard for everyday Americans—helping small businesses get off the ground, expanding access to housing, and creating jobs across the country,” said Rep. Kim.
Lawmakers cautioned that eliminating the Fund could disrupt financing pipelines that sustain small businesses, affordable housing, and community development projects nationwide.