President Donald Trump is trying to "kill" the Community Development Financial Institutions Fund (CDFI) program, and Senate Republicans are pushing back on the proposal.
Politico reported Monday in the financial newsletter that while Trump wants to eliminate the fund, the text of the Senate GOP appropriations bill intends to continue funding the CDFI Fund at the same level as 2024.
Politico explained, "the administration ordered that all 100 or so federal employees who administer the fund be fired during the government shutdown and has proposed rebranding and significantly cutting its funding."
The CDFI Fund is described as an investment of federal dollars combined with private sector capital "to support economically disadvantaged communities."
Politico said that there are many Republican officials who see it as "a lifeline" for their states as well as for community banks and credit unions.
"Champions of the fund defend it as a force multiplier, with every $1 in federal money provided to CDFIs estimated to leverage more than $8 in private capital," the report described.
The Department of the Treasury installed new requirements in September that would block any funding for climate efforts and anything involving diversity, equity and inclusion.
Trump already ordered that the 100 or so workers who work for the fund, "be fired" amid the government shutdown.
Congress has already appropriated $289.1 million of funds that Office of Management and Budget Director Russell Vought refuses to release. The funds will expire on Sept. 30, 2026.
Sen. Steve Daines (R-Mont.) and Sen. Mike Crapo (R-Idaho) have pushed back on the effort, noting the funds play a huge role in their states.
“CDFIs play a critical role in economic development in rural, tribal and underserved areas in Idaho. I remain supportive of the Fund and am committed to continuing efforts to ensure it fulfills its purpose of serving communities more often left behind by the federal government and traditional finance sector," Crapo told Politico.