U.S. Sen. Mike Crapo (R-ID) and U.S. Rep. Young Kim (R-CA) are urging the U.S. Department of the Treasury and the Office of Management and Budget to support the Community Development Financial Institutions (CDFI) Fund.
In a letter to Treasury Secretary Scott Bessent and OMB Director Russell Vought, Crapo and Kim said the elimination will negatively impact the economy long-term. The letter was signed by Crapo and Kim, along with an additional 103 Republican Members of Congress.
“CDFIs play an important role in supporting economic development in rural, tribal and other underserved communities in our states,” the letter reads. “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. It is unclear how these programs will continue to operate if the CDFI Fund’s obligations cease to function.”
The letter highlights certain programs administered by the Fund, including:
- The New Markets Tax Credit program, which has created over one million jobs since the credit’s creation and was made permanent under the President’s One Big Beautiful Bill Act (OBBBA); and
- The Capital Magnet Fund, which scales housing investments to build new housing and pairs with the Low-Income Housing Tax Credit, also permanently expanded by the OBBBA, to address the nation’s housing shortage.
“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 concludes.
Crapo is the co-chair of the Senate Community Development Finance Caucus.