Overview
- President Trump issued an executive order on March 14, 2025, directing federal agencies to cut the CDFI Fund 'to the maximum extent.'
- The CDFI Fund has facilitated over $58 billion in loans for underserved communities, supporting small businesses, affordable housing, and community facilities.
- Republican lawmakers, including Rep. Young Kim and House Financial Services Chairman French Hill, have joined Democrats in opposing the cuts.
- Community banks, which rely on the CDFI Fund, are vital to rural areas, where they make up 72% of bank branches but have been in decline for decades.
- Congress, which has historically supported the CDFI Fund, will play a decisive role in determining the program's future as the Treasury reviews the order by March 21, 2025.