WASHINGTON—Funding for community development financial institutions is once again in the cross-hairs of the Trump Administration. Since President Trump was elected, the administration has put forward several proposals eliminating or sharply reducing funds for CDFIs, and in each case Congress has restored the funding or even increased it.
The House has now passed a package of measures aimed at reducing the federal deficit that among other steps rescinds $142 million from the Community Development Financial Institutions (CDFI) Capital Magnet Fund (CMF) program.
The CMF provides grants to help community institutions, such as credit unions, provide affordable housing solutions.
The package now moves to the Senate where its future is uncertain. Both NAFCU and CUNA are urging lawmakers to fully fund the CDFI program.