WASHINGTON – U.S. Sens. Mark R. Warner (D-VA) and Mike Crapo (R-ID), co-chairs of the Senate Community Development Finance Caucus, led a letter to the Trump administration signed by 23 senators emphasizing the bipartisan support for the Community Development Financial Institutions Fund (CDFI Fund), and highlighting the fund’s critical role in providing capital to underserved communities.

The CDFI Fund boosts economic growth in largely underserved communities that lack traditional access to financing, creating a public-private partnership to promote access to capital. Since 1994, the CDFI sector has grown to over 1400 institutions, located in every state and territory in the nation — and leveraging at least $8 in private sector investment for every $1 in public funding received.

“Over 1,400 CDFIs represent a significant portion of America’s financial services sector, delivering over $300 billion in financial services each year to urban and rural communities across every state,” the senators wrote. “Each year, CDFIs provide affordable growth capital to over 100,000 small businesses and finance over $100 billion in residential real estate, bringing down the cost of housing through new construction and affordable home mortgages. The important work of the CDFI sector is strengthened by the CDFI Fund, which provides seed funding to new CDFIs, grows the capacity of existing CDFIs, and provides oversight to ensure federal dollars are spent appropriately. Elimination of key CDFI Fund functions would undermine this important progress, including for small businesses and homeowners.” 

They continued, “The CDFI Fund’s public-private partnership model aligns with this Administration’s emphasis on ensuring that taxpayer dollars are spent efficiently and with measurable impact. Every federal dollar injected into a CDFI generates at least eight more dollars from private-sector investment. Due in large part to the investments the Trump Administration made in the CDFI Fund in 2020, industry assets have tripled and the number of CDFI-certified entities has risen by 40 percent.”

In addition to Sens. Warner and Crapo, the letter was also signed by U.S. Sens. Chuck Schumer (D-NY), Tina Smith (D-MN), Cindy Hyde-Smith (R-MS), Amy Klobuchar (D-MN), Roger Wicker (R-MS), Rev. Raphael Warnock (D-GA), Dr. Bill Cassidy (R-LA), Chris Van Hollen (D-MD), Mike Rounds (R-SD), Jack Reed (D-RI), Steve Daines (R-MT), Gary Peters (D-MI), John Boozman (R-AR), John Hickenlooper (D-CO), Lisa Murkowski (R-AK), Ron Wyden (D-OR), Tim Sheehy (R-MT), Cory Booker (D-NJ), Jim Justice (R-WV), Dick Durbin (D-IL), and Ruben Gallego (D-AZ).

Immediately following President Trump’s Executive Order, Sens. Warner and Crapo highlighted the success of the CDFI fund. In 2022, Sens. Warner and Crapo launched the bipartisan Senate Community Development Finance Caucus, focused on coordinating and expanding on public and private-sector efforts in support of the missions of CDFIs. Since its inception, the caucus has grown to 28 members, 14 Democrats and 14 Republicans.

A copy of letter is available here and text is below.

Dear Secretary Bessent,

We write to reaffirm our bipartisan support of the CDFI Fund, its operations and the critical role it plays in the communities it serves. We appreciate your recent statement recognizing how the CDFI Fund and CDFIs are integral to the Administration's pursuit of job growth, wealth creation and prosperity.

Federal support for the CDFI mission began in 1994, with enactment of the bipartisan Riegle Community Development and Regulatory Improvement Act. Since its inception over three decades ago, the CDFI Fund has proven critical to the CDFI sector’s growth and has met the mission to create a public-private partnership to promote access to capital in our most underserved urban and rural communities.

Over 1,400 CDFIs represent a significant portion of America’s financial services sector, delivering over $300 billion in financial services each year to urban and rural communities across every state. Each year, CDFIs provide affordable growth capital to over 100,000 small businesses and finance over $100 billion in residential real estate, bringing down the cost of housing through new construction and affordable home mortgages. The important work of the CDFI sector is strengthened by the CDFI Fund, which provides seed funding to new CDFIs, grows the capacity of existing CDFIs, and provides oversight to ensure federal dollars are spent appropriately. Elimination of key CDFI Fund functions would undermine this important progress, including for small businesses and homeowners.

The CDFI Fund’s public-private partnership model aligns with this Administration’s emphasis on ensuring that taxpayer dollars are spent efficiently and with measurable impact. Every federal dollar injected into a CDFI generates at least eight more dollars from private-sector investment. Due in large part to the investments the Trump Administration made in the CDFI Fund in 2020, industry assets have tripled and the number of CDFI-certified entities has risen by 40 percent.

In sum, more distressed communities are being served by CDFIs than ever before, more first-time buyers are receiving the financing they need to purchase a home, more community facilities are being built, and more commercial loans are reaching entrepreneurs. A reduction in the functions and operations of the CDFI Fund will have a corresponding impact on CDFI-certified entities and local communities and we urge you to avoid this unfortunate outcome. 

Thank you for your consideration of our request. We stand ready to work with your Administration to promote policies that deliver opportunity and prosperity to all Americans.

Sincerely,

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