Inclusiv Statement on Executive Order Threatening the Elimination of the CDFI Fund
FOR IMMEDIATE RELEASE
New York, NY (March 16, 2025) - President Trump’s latest Executive Order: Continuing the Reduction of the Federal Bureaucracy, threatens the elimination of the Community Development Financial Institutions Fund known as the CDFI Fund, at a time when these critical investments are needed the most to support American families and their communities.
The CDFI Fund was established in 1994 as a bipartisan initiative to promote access to capital and local economic growth in communities with unmet needs across the country. The CDFI Fund through its monetary awards, provides funding and technical assistance to mission driven financial institutions designated as CDFIs, that raise and deploy capital to expand affordable housing, promote homeownership, strengthen small business, create jobs and build consumer financial security.
“With rising costs squeezing family budgets, we need more capital not less, going to strengthen local economies, expanding housing and small business, creating jobs, and building household savings. That’s what CDFIs do. They are the fabric of our local economies. The Fund is an essential partner and catalyst for continuing to strengthen economic activity,” said Cathie Mahon, president/CEO of Inclusiv.
For the past 30 years, CDFIs have earned bipartisan support because they have proven themselves as one of the federal government’s best market-based strategies. Since the creation of the Fund, CDFI institutions have leveraged at least $8 in private sector investment for every $1 in public funding received. This past week, Congress passed the Full-Year Continuing Appropriations and Extensions Act, 2025, a law directing a continuation of the FY24 level of $324 million in appropriations for the CDFI Fund and $500 million in CDFI Bond Guarantee Authority for FY 2025.
Inclusiv has been in active discussion with leaders across the CDFI sectors and with system partners to actively voice support for the Fund. We are encouraging credit unions and system partners to take action by reaching out to their Congressional Representatives and Senators and make sure they know what the CDFI Fund means for local communities.