Particle.news
Download on the App Store
3 ARTICLES
·
2mo ago

Trump's Order to Slash CDFI Fund Faces Bipartisan Pushback

President Trump's directive to cut the Community Development Financial Institutions Fund threatens critical financial support for underserved communities, with Congress set to decide its fate.

WASHINGTON, DC - MARCH 06: U.S. President Donald Trump speaks as he signs executive orders in the Oval Office of the White House on March 06, 2025 in Washington, DC.
Image
Image

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.