On Friday, President Donald Trump issued an Executive Order, “Continuing the reduction of the federal bureaucracy,” which included the elimination of the “non-statutory components and functions” of the Community Development Financial Institutions Fund (CDFI Fund).
The CDFI Fund was established in 1994 to expend economic opportunity in low-income and underserved communities by supporting banks, credit unions, loan funds and others categorized as Community Development Financial Institutions.
Over the weekend, the bipartisan “Community Development Finance Caucus,” reiterated its commitment to the CDFI Fund, stating, “Since 1994, the CDFI sector has grown to over 1,400 institutions located in every state and territory in the nation – and leveraging at least $8 in private sector investment for every $1 in public funding received.”
According to the CDFI Fund website, the fund has provided 425 awards in Texas since 1994 to organizations that make credit, capital, and other critical financial services available to disadvantaged businesses and low-income communities throughout the state , including more than $18MM in awards last year.
“IBAT is supportive of eliminating wasteful spending in the federal bureaucracy,” said IBAT President and CEO Christopher Williston. “We are working closely with our friends at the Community Development Bankers Association to understand the full impact of the Executive Order, and the potential effects it might have on Texas community banks that utilize the CDFI Fund to support lending activities in their communities.”
