Congress should reassert the power of the purse by restoring Community Development Financial Institution (CDFI) funding and programming recently frozen by the Executive Branch, the National Community Reinvestment Coalition (NCRC) and 211 local community development advocates urged in a letter to legislators on Friday, February 28.
“Investing in CDFIs should not be a partisan issue,” the groups wrote to Sen. Bill Hagerty, Sen. Jack Reed, Rep. David Joyce and Rep. Steny Hoyer. “CDFIs exist in both Democrat-majority districts and Republican-majority districts and have helped working Americans, regardless of their political party, to access affordable loans and investments.”
The amount of money in question is $354 million – the previously proposed level of CDFI Fund appropriations at issue in budget discussions late last year – which is approximately four one-hundredths of one percent of the 2024 annual non-defense discretionary budget.
“CDFIs have boosted economic growth in urban, rural and tribal communities by expanding small businesses and increasing the supply of affordable housing,” said Mac McNeil, President of NCRC Community Development Fund. “Anyone who cuts crucial CDFI programs and services should be prepared to deal with the consequences: loss of jobs, higher costs, and an overall weakened economy. That’s why 211 community development organizations of our national coalition urge Congress to protect the CDFI Fund – before it’s too late.”
The coalition letter reflects concern about both appropriations for the federal CDFI Fund itself and the effective freezing of three related programs by the Treasury Department.
“We also ask that you urge Treasury Secretary Scott Bessent to reject the Department of Government Efficiency’s (DOGE) recommendation to cancel external contracts to evaluate applications for the New Market Tax Credits (NMTC) Program, the CDFI Technical Assistance/Financial Assistance Program, and the Native American CDFI Assistance (NACA) Program,” the letter reads. “A halt in reviewing applicants and disbursement of funds will disrupt thousands of CDFIs’ ability to deliver critical services, such as small business lending and affordable housing development.”
Read the full letter here. The following organizations joined NCRC in signing it:
Community Economic Development Center of Southeastern Massachusetts, Inc.
IRC’s Center for Economic Opportunity (IRC-CEO)
Dorchester Bay Economic Development Corporation
Little Haiti Housing Association, Inc
Local Enterprise Assistance Fund (LEAF)
Sowing Empowerment & Economic Development, Inc
Opportunity Communities
Housing Assistance Council
Nonprofit Finance Fund
Gateway Community Development Corporation
Entrepreneurship for All
Quabag Valley Community Development Corporation
Worcester Community Housing Resources
St. Louis Equal Housing & Community Reinvestment Alliance (SLEHCRA)
R.A.A. – Ready, Aim, Advocate
ProsperUs Detroit
Finanta
Rural Housing Coalition of New York
Community Development Network of Maryland
Boston Impact Initiative Fund
Coalition for Nonprofit Housing and Economic Development
Beneficial State Foundation
Our Neighborhoods Capital Fund
Self-Help Housing Corporation of Hawaii
Living Cities
River Cities Development Services
New Jersey Citizen Action
JEDI
ICA Fund
Virginia Community Voice
Beneficial State Bank
The McKnight Foundation
North East Housing Initiative
Urban Land Conservancy
Excellerate Foundation
Pillsbury United Communities
Change Machine
Renewable Manufacturing Gateway dba Community Growth Fund
Local First Arizona
North East Housing Initiative
Alternatives FCU
Regional Housing Legal Services
California Capital Small Business Financial Development Corporation
The Greenlining Institute
THE HOUSING FUND INC.
Balfour Beatty US
Universal Housing Solutions CDC
Global Detroit
First Community Capital
Community Development Corporation of Oregon
Washington Homeownership Resource Center
Income Movement
Alternatives Federal Credit Union
Rockland Housing Action Coalition
Southwest Georgia United
Growth Partners Arizona
Business and Community Lenders (BCL) of Texas
Atlanta Land Trust, Inc.
Minnesota Consortium of Community Developers
Welfare Reform Liasion Project, Inc.
Community Housing of Wyandotte County, Inc.
Movin’ Out, Inc.
Neighborhood Development Foundation
Amplify Equity, Inc.
New Jersey Community Capital
United South Broadway Corporation
Atlanta Neighborhood Development Partnership
Association for Enterprise Opportunity (AEO)
Association for Neighborhood & Housing Development
Massachusetts Association of Community Development Corporations
NeighborWorks Southern Colorado
Habitat for Humanity St. Tammany West
Community and Shelter Assistance (CASA) of Oregon
MS Communities United for Prosperity (MCUP)
Southside Organizing Center
African American Alliance of CDFI CEOs
U SNAP BAC INC
Harlingen Community Development Corporation
Prosperity Unlimited, Inc.
HomeBase Cincinnati
Habitat for Humanity St. Tammany West
Genesee Co-op Federal Credit Union
Friends of the Public Bank East Bay
CIELO
Cooper Foundation
Matt Hull
Talitha Consults LLC
Woodstock Institute
Metro Milwaukee Fair Housing Council
United Way of Central Ohio
Neighborhood Allies
NewCorp, Inc.
American Nonprofits
Pennsylvania Assistive Technology Foundation
Infinite Erie
Maura Shenker Solutions, LLC
Enterprise Development Fund
The Urban Child Institute
Uptima Entrepreneur Cooperative
UnmaskEDU, LLC.
Neighborhood Development Foundation
The Acceleration Project
Our Neighborhoods Capital Fund
Cafe Chadra Inc.
Chrysalis Consulting Group
Beyond Housing, Inc.
EAH Housing
Urban Strategies, Inc. (USI)
Thomas W. Briggs Foundation
Hyde Family Foundation
Sankofa CDC
United Way of King County
Society of the Flora, Fauna & Friend
The Barra Foundation
People’s Housing+
Verity Credit Union
Consumer Action
City of Detroit
Public Profit
Main Street Launch
Resilient Insurance Inc
Mexican American Unity Council, Inc. (MAUC)
Henry Family
Homestead Resources
Crowley, White, Helmer, & Sevig
African Community Housing & Development
United Way of Central Arkansas
California Association for Micro Enterprise Opportunity Network
Asset Funders Network
West Oakland Job Resource Center
Habitat for Humanity of Michigan
Hope Community, Inc.
Cornell University
Garrett County Community Action
Jewish Family Services of Washtenaw County
Women’s Foundation of Montana
The Equity Practice
Pathfinders
Financial Empowerment Network
Lighthouse Silicon Valley
Citizen Potawatomi CDC
Small Business Majority
Florida Home Partnership, Inc.
South Dallas Fair Park ICDC
National CAPACD- National Coalition for Asian Pacific American Community Development
Project Vida/ El Paso Collaborative
The LOVE Building
Community Opportunity Alliance
Southern Dallas Progress Community Development Corporation
Local Initiatives Support Corporation (LISC) – Toledo
Prosperity Indiana
Circle Homes, Inc.
United South Broadway Corporation
Utah Housing Coalition
McLennan Community Investment Fund
The Sacramento Environmental Justice Coalition
ICON CDC
Local Initiatives Support Corporation (LISC)
Housing Oregon
Texas Afterschool Centers on Education Fund
Massachusetts Association of Community Development Corporations
Pacific Asian Consortium in Employment
TMC Community Capital
SouthFair Community Development Corporation
Avenida Guadalupe Association
Water for SandBranch Coalition
Neighborhood Housing Services of Greater Berks, INC
Impact Ventures
Houston Habitat for Humanity
Texas Housing Foundation
Culturingua
Brazos Valley CDC, Inc.
Five Points Community Capital, LLC
Business and Community Lenders (BCL) of Texas
Exodus Lending
Florida Housing Counselor Netw
THE HOUSING FUND INC.
Neighborhood Housing Services of Waterbury
Credit Builders Alliance
Chicago Community Loan Fund
Washington Area Community Investment Fund
Minority Business Development Institute
Black Business Investment Fund (BBIF)
Central Baptist Community Development Corporation
Freedom Equity Inc.
Rise Economy
Clover Inc.
Elevation Community Land Trust
Leviticus 25:23 Alternative Fund, Inc.
North Alabama Revolving Loan Fund LLC
Washington Homeownership Resource Center
Pima County Community Land Trust
African American Alliance of CDFI CEOs
Dayton Region New Market Fund
Illinois Facilities Fund
Homestead Resources
Newcap Inc.
Thredz.org
Ceiba
Grounded Solutions Network
United Housing, Inc.
Communities Unlimited, Inc.
Local Enterprise Assistance Fund
Center for LGBTQ Economic Advancement & Research (CLEAR)
Housing Options & Planning Enterprises, Inc.
Capital For Change, Inc
QueerSeed Collective
Washington State Employee Credit Union
SC UpLift Community Outreach
Neighborworks of Sacramento
People’s Opportunity Fund
