More than 100 Republican lawmakers are expected to sign on to a letter pushing back on the Trump administration’s move to eliminate a popular, bipartisan community development finance fund that helps small businesses and homebuyers access capital in areas of the country underserved by big banks.
The congressional Republicans are pressing the Trump administration to reverse its decision to fire all employees at the Treasury Department’s Community Development Financial Institutions Fund, according to the draft letter. The letter is expected to be sent to the administration Thursday.
The bicameral letter, led by Rep. Young Kim (R-Calif.), a member of the House Financial Services Committee, and Sen. Mike Crapo (R-Idaho), who chairs the Senate’s Community Development Finance Caucus, is addressed to Treasury Secretary Scott Bessent and Office of Management Director Russ Vought. The letter “strongly urges the Administration to continue carrying out the statutory obligations of the CDFI Fund that are essential to ensuring private investments reach our states and districts.”
The large wave of GOP lawmakers that signed the letter signals widespread support among congressional Republicans for a program that the Trump administration has attempted to eviscerate.
The list of signatories obtained by POLITICO includes 27 Senators and 74 House members. The letter was signed by key Republicans, including Sens. Tim Scott (R-S.C), Lisa Murkowski (R-Alaska), Susan Collins (R-Maine), Thom Tillis (R-N.C.), Chuck Grassley (R-Iowa), Mike Rounds (R-S.D.) and Reps. Bill Huizenga (R-Mich.), Mike Lawler (R-N.Y.), Mike Flood (R-Neb.), and Andrew Garbarino (R-N.Y.), among others.
The CDFI Fund awards federal dollars to CDFIs, which are community banks, credit unions and other financial institutions, that lend and provide other types of capital as part of a public-private partnership designed for communities traditionally underserved by the banking industry.
The program has been a key component of federal efforts to promote financial inclusion and support economic development in underserved communities. By providing capital to local institutions, the CDFI Fund enables these entities to offer loans and services to small businesses and homeowners who are often excluded from traditional banking systems. The bipartisan support for the program reflects its broad appeal and the recognition of its role in fostering economic resilience and opportunity in marginalized regions.
The Trump administration’s decision to eliminate the CDFI Fund has sparked concerns about the potential impact on local economies and the ability of small businesses to access critical financial resources. The letter from the Republican lawmakers underscores the administration’s perceived overreach in dismantling a program that has been integral to fostering community development and economic growth. The administration’s stance appears to prioritize fiscal conservatism, but the backlash from Republican lawmakers highlights the program’s significance beyond partisan lines.
As the administration continues its efforts to reshape federal programs, the Republican-led push for the CDFI Fund’s preservation raises questions about the balance between executive authority and legislative oversight. The strong bipartisan support for the program also signals an opportunity for reconciliation and collaboration, even in a divided political landscape. The outcome of this ongoing debate could have far-reaching implications for small businesses, local economies, and the broader financial inclusion efforts in the United States.
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