"Founded in 1994 and housed at the US Department of Treasury, the CDFI Fund, with modest federal allocations ($324 million in fiscal year 2025, the fund's highest core funding ever), has helped spur a network of community lending institutions. Not long ago, due to their ability to support businesses during the pandemic in low-income communities, CDFIs had garnered record support, including $12 billion in one-time funding to support lending by CDFIs and other banks and credit unions owned by and operating in communities of color."
"This new attempt to terminate CDFI fund staff not only resulted in the judge's ruling to temporarily block the layoffs, but it also spurred letters to Congress and US agencies from Native CDFIs and their supporters, state banking regulators, a group of six banking associations, and 105 GOP senators and representatives. While the CDFI Fund still enjoys broad support, it's quite clear that CDFIs face a very significantly changed political and economic environment."
Last month, in response to the government shutdown, the administration sought to lay off 4,200 federal workers effective December 13, including all 83 staff at the Community Development Financial Institutions Fund (CDFI Fund). The CDFI Fund provides grant support to 1,400 loan funds, banks, venture funds, and credit unions that hold over $400 billion in assets serving low-income communities. Founded in 1994 at the U.S. Treasury, the fund received $324 million in fiscal 2025 and helped secure $12 billion in one-time pandemic relief. The administration has regularly targeted CDFIs, but legal rulings and congressional pressure temporarily blocked the layoffs.
Read at Non Profit News | Nonprofit Quarterly
Unable to calculate read time
Collection
[
|
...
]