Two senior Republican senators have expressed strong support for the Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) after the Trump administration’s decision to eliminate the program by firing all of its staff. The move, part of a broader reduction-in-force by OMB Director Russell Vought, has prompted criticism from lawmakers who emphasize the program’s bipartisan support and its importance in boosting financial access for underserved communities.
Senate Community Development Finance Caucus co-chair Mike Crapo (R-Idaho) said he was discouraged by the sudden termination of employees and expressed hope for a reversal. Sen. Mike Rounds (R-S.D.), who has consistently supported the fund, reiterated his support, highlighting its positive impact in South Dakota. The CDFI Fund provides federal dollars to community banks and credit unions through a public-private partnership, aiming to increase access to financial services in underserved areas.
Both senators called for a continuing resolution to re-open the government and restore the program. Warner and Crapo are working together to send a bipartisan letter of opposition, similar to their previous actions after an initial executive order to eliminate the fund. Warner noted that he and Crapo were surprised by the sudden fir, and believe the move may have originated from the Office of Management and Budget rather than Treasury, as the letter to fired employees indicated.
South Dakota CDFIs received $13.3 million from the fund in 2024, making the state a top recipient per capita. Crapo would not comment whether he had spoken with Treasury Secretary Scott Bessent or the White House on the matter but said that “Congress has a role anytime Congress chooses, it can take some action.” He added that he and his caucus co-chair, Sen. Mark Warner (D-Va.), “are going to work together to try to get this fixed.”
Warner, on a press call Tuesday, said he’s working with Crapo to try to send a bipartisan letter from the caucus like they did in March after the initial executive order requesting the fund be eliminated to the fullest extent allowed under the law, to “show strong, bipartisan pushback.” Additionally, Warner said he reached out to Bessent regarding the unexpected firings on the CDFI Fund’s entire staff and that he expected to hear a response back soon. Neither he nor Crapo saw the RIFs coming, Warner said.
“At least my office and Crapo’s office, the first reaction [to the CDFI Fund RIFs] was shock,” and that “it appears maybe this didn’t come from Treasury, it appears that it came from the OMB. I think this goes against the law,” Warner said.