Several weeks ago, we reported on an Executive Order requiring the Community Development Financial Institutions (CDFI) Fund to eliminate its “non-statutory components and functions.”
The Order required the Treasury Department to conduct a full review of CDFI programs and provide a report confirming full compliance with the order and explaining which functions were statutorily required and to what extent.
In the report, Treasury outlined several key points regarding CDFI Fund programs, saying:
- All 11 programs of the CDFI Fund have statutory backing. The Treasury attached citations to the enabling legislation for each CDFI program.
- Statutory language overrides executive directive. The report emphasized that the CDFI Fund is performing its statutory functions required by law and as such should be subject to the executive order.
- There will be ongoing program evaluation. While affirming legality, the Treasury noted that it will continue to explore opportunities for operational efficiency.
Several IBAT members have been closely monitoring the CDFI Executive Order. IBAT will continue to keep a close eye on any Congressional or administration action that would undermine the future of the programs.
