WASHINGTON—A large group of Democratic lawmakers — led by Rep. Maxine Waters and Rep. Bill Foster — sent a strong letter to Treasury Secretary Scott Bessent and OMB Director Russell Vought condemning the Trump administration’s attempt to lay off all CDFI Fund staff during the ongoing government shutdown.
As CUToday.info reported, in early October the Office of Management and Budget issued termination notices to CDFI Fund staff.
The letter calls the action illegal, warns it would devastate underserved communities, and urges the administration to immediately reverse course. Lawmakers emphasize:
- The CDFI Fund has three decades of bipartisan success
- CDFIs were central to PPP emergency lending and pandemic relief
- CDFI Fund awards leverage private capital 8:1 and fuel billions in investment
- Staff are essential to administering programs, recertifying institutions, and processing grant and tax credit applications
- The Administration already delayed congressionally-approved CDFI awards and altered application requirements during the shutdown — adding to disruption
The signatories argue that firing staff undermines small-business lending, affordable housing financing, rural development, and minority-owned and mission-driven financial institutions. They note bipartisan backlash, legal challenges, and say failing to reverse the move could cause long-term economic harm in vulnerable communities.