U.S. Senator Mike Crapo (R-Idaho) and U.S. Representative Young Kim (R-California) have sent a letter to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought, expressing continued support for the Community Development Financial Institutions (CDFI) Fund. The letter, signed by 103 additional Republican members of Congress, urges the Administration to maintain the Fund’s statutory obligations, warning that its elimination could have long-term negative effects on the economy.
The letter states: “CDFIs play an important role in supporting economic development in rural, tribal and other underserved communities in our states. They enhance the viability of community development projects, especially in rural areas, by offering flexible financing tools such as longer loan terms and interest-only repayment periods.”
The lawmakers further note: “It is unclear how these programs will continue to operate if the CDFI Fund’s obligations cease to function.”
They conclude: “We stand ready to work with the Administration to make additional improvements at the Fund to ensure it fulfills its purpose of serving communities left behind by the federal government and the traditional finance sector.”
The letter also points out specific programs managed by the CDFI Fund. These include the New Markets Tax Credit program, which has reportedly created over one million jobs since its inception and was made permanent under recent legislation. Another highlighted initiative is the Capital Magnet Fund, which helps expand housing investments and works alongside programs like the Low-Income Housing Tax Credit—also recently expanded—to address housing shortages.
Senator Crapo serves as co-chair of the Senate Community Development Finance Caucus.
