It’s not over when you quit; it’s over when you lose.
Last week, I attended the Annual Meeting and Advocacy Day for the CDFI Coalition in Washington, D.C., the industry's lobbying arm. Over the weekend, I contacted sources to gather additional information and ensure I could share valuable and accurate insights with our clients and the broader CDFI community. Let’s get to it**:
Executive Order on the CDFI Fund. After the Continuing Resolution passed the Senate, the White House issued an Executive Order** with the potential to reduce or severely eliminate the CDFI Fund. The order requires agencies to eliminate "non-statutory components and functions...to the maximum extent consistent with applicable law. At the same time:
The Riegle Community Development and Regulatory Improvement Act of 1994 is the "applicable law"** establishing the CDFI Fund.
The President just signed 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.
At their confirmation hearings this winter, the Treasury Secretary and Deputy Treasury Secretary-designate testified their support for the CDFI Fund.
The CDFI Fund's programs, including certification (except the Small Dollar Loan Fund), have a clear statutory basis.
No one at the Fund has been laid off yet; discussions focus on minimizing operations, which undoubtedly means staff layoffs.
Certification applications are currently being reviewed, with the initial review conducted by an independent contractor and a second-level review by staff. Last Thursday and Friday, the first batch of determination letters was sent out to currently certified CDFIs, many of whom are F|A clients (hurrah!). Back in February, OMB recommended that Treasury cancel the contracts of the independent contractor. The Treasury Secretary has not acted upon that recommendation.
Applications for the annual CDFI Program Round are due March 21st; the contracts for independent reviewers are in place.
**Executive Order -Key language: "The non-statutory components and functions of the following governmental entities shall be eliminated to the maximum extent consistent with applicable law, and such entities shall reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law."
2. Advocacy for the CDFI Fund
Senate Bi-Partisan CDFI Caucus
In 2023, Senators Mike Crapo (R-ID) (pronounced 'cray-poh') and Mark Warner (D-Va) created the Senate Bi-Partisan CDFI Caucus comprising 14 Senate Democrats and 14 Senate Republicans. Their purpose is to be better informed about the CDFI Fund, its programs, operations, and opportunities for growth. The establishment of the Caucus is another example of the level of bipartisan support the CDFI Fund has had since its inception.
Senator Mike Crapo (R-ID) is the Chair of the Senate Finance Committee, for which all spending bills must pass through before approval.
Saturday night (after the EO was issued Friday night), Senator Warner and Crapo issued a joint press release, voicing their support for the CDFI Fund. This is fairly unprecedented in my experience.
Stay Informed and Take Action! Now!
CDFI Coalition: Managed by Rapoza Associates, one of the finest advocacy firms in D.C., with a long and successful track record for the community economic development sector. There is no reason not to become a dues-paying member. Yesterday, the Coalition sent out this urgent request:
“Because time is tight…… please ask your Representative or Senator to contact the White House or the Treasury Department to indicate support for the CDFI Fund and its programs and to maintain the capacity of the Fund. At a minimum, reach out to the following selected offices, many of whom have expressed support for the CDFI Fund programs in the past or are members of the Senate Community Development Financing Caucus.
Opportunity Finance Network (OFN): Head to OFN’s Policy Action Center for information, tools, and other resources to help you advocate for the communities your CDFI serves.
Native CDFI Network (NCN): Pete Upton and the crew are doing an excellent job providing “just in time” updates, resources, and tools to their members, as well as guidance for taking action. Yesterday, NCN conducted a webinar on Examining Trump’s Executive Order on Federal Bureaucracy Reduction. NCN and Oweesta Corporation have joined together to invite all Native CDFIs and other key Indian Country stakeholders and partner organizations to join their sign-on letter to Treasury officials and Congressional leadership opposing President Trump’s executive order (EO) targeting the CDFI Fund that was issued on Friday.
African-American Alliance of CDFI CEOs: CEO Lenwood V. Long. Jr. and President Amber Banks-Bond are leading the charge in organizing for their members to take action.
In the meantime, in through the nose…….Take care!
