As the Trump administration’s budget-cutting activity continues, the Treasury Department has moved to protect the Community Development Financial Institutions Fund (CDFI), a financial program for low-income and underserved communities.
According to a Bloomberg report, President Trump has ordered the program’s functions to be eliminated to the maximum extent allowed by law. However, the department said the fund is responsible for 11 programs or functions that are all legally required. Bloomberg said this assertion was included in a report to the Office of Management and Budget (OMB).
“The CDFI Fund is performing its statutory functions as required by law,” the report stated. The department noted that it would identify opportunities to improve and enhance efficiencies.
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The CDFI has over $300 billion of outstanding mortgages and loans for small businesses and CRE projects in low-income communities. President Trump’s March 14 executive order cutting "unnecessary" elements of the federal bureaucracy included the CDFI fund and six government entities, which are directed to reduce functions and associated personnel to the minimum needed by law.
Treasury Secretary Scott Bessent has been advocating to preserve the CDFI while adhering to priorities around reducing federal spending, Bloomberg reported. He described the program as very important during his confirmation hearing in January.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
