WASHINGTON—President Trump on Friday signed an executive order that aims to eliminate seven federal agencies—including the Community Development Financial Institutions Fund (CDFI).
The President directed the government entities “be eliminated to the maximum extent consistent with applicable law,” insisting they “reduce the performance of their statutory functions and associated personnel.” It ordered the heads of each entity submit a report to the Office of Management and Budget confirming full compliance within seven days, The Hill said.
The list of agencies targeted: The Federal Mediation and Conciliation Service, United States Agency for Global Media, Woodrow Wilson International Center for Scholars, Institute of Museum and Library Services, United States Interagency Council on Homelessness, Community Development Financial Institutions Fund, Minority Business Development Agency, and Arctic Research Commission.
“This action builds on an Executive Order President Trump previously signed to reduce unnecessary governmental entities and Federal advisory committees,” Trump’s order states.
DCUC Expresses Concern
The Defense Credit Union Council expressed strong concerns about Trump’s decision.
“Eliminating the CDFI Fund would harm the very people who need support the most—working families, small business owners, and underserved populations, including military members and veterans. We urge policymakers to stand with CDFI credit unions and preserve this indispensable resource,” said Jason Stverak, DCUC chief advocacy officer. “By maintaining the CDFI Fund, we can ensure that credit unions continue to empower hard-working families, support small businesses, and keep our communities—especially those that serve our nation’s defenders—strong and resilient.”
As of January 2025, there are 495 certified CDFI credit unions across the United States, collectively serving millions of members in economically distressed areas.
“We urge policymakers to recognize the profound importance of the CDFI Fund to local communities and to our service members and to reconsider any effort to dismantle this vital program,” Stverak said, noting DCUC has been strongly supportive of the CDFI Fund in recent years and has sent numerous letters to Capital Hill in support of the Fund.
In fiscal year 2024 alone, CDFI program awardees financed over 109,000 small businesses, provided funding for more than 45,000 affordable housing units, and originated more than $24 billion in loans and investments, DCUC noted.
“These numbers represent real families obtaining homes and real entrepreneurs launching businesses because of CDFI-backed credit unions,” Stverak said.
DCUC outlined the consequences of eliminating the CDFI Fund.
“Eliminating the CDFI Fund would have immediate and severe consequences for credit unions and the communities they serve. Without CDFI grants and technical assistance, many credit unions would lose the resources needed to sustain their community-focused programs,” Stverak said.
According to DCUC this would lead to:
- Reduced access to financial services for low-income Americans, forcing many to turn to payday lenders and check-cashing services. About 25% of U.S. households are currently unbanked or underbanked
- Fewer small business loans, cutting off capital for entrepreneurs in struggling communities. CDFIs have financed tens of thousands of businesses and micro-enterprises deemed too risky by traditional banks
- Economic stagnation in communities that rely on CDFI-backed lending to support job creation, affordable housing, and infrastructure development.
- Additionally, demand for CDFI support already exceeds supply. In 2024, funding requests greatly surpassed available resources, proving that the program needs expansion—not elimination
Inclusiv Responds
Inclusiv has been in active discussions with leaders across the CDFI sectors and with system partners to actively voice support for the Fund, explained Pablo DeFillipi, Inclusiv EVP.
"For the past 30 years, CDFIs have earned bipartisan support because they have proven themselves as one of the federal government’s best market-based strategies," DeFillipi said. "They use a small amount of public dollars to leverage private sector funding to promote economic revitalization and self-sufficiency in distressed, low-income, and disadvantaged communities.
"It is critical to recognize that the CDFI Fund was established as a bipartisan initiative to promote access to capital and local economic growth in communities with unmet needs across the country," continued DeFillipi. "Since 1994, CDFIs have leveraged at least $8 in private sector investments for every $1 in public funding received. Legislators of both parties have historically supported the Fund as shown by the growing number of senators that have joined the bipartisan CDFI caucus, led by senators (Mike) Crapo and (Mark) Warner."
DeFillipi explained that CDFIs are financial intermediaries that measure success by focusing on the “double bottom line” of financial performance and promoting job creation, affordable housing, and economic opportunity.
"CDFIs direct at least 60% of their lending toward economically distressed people and communities," DeFillipi said. "By providing a 'hand up rather than a handout, they advance financial independence, combat poverty and strengthen small businesses in areas overlook by the financial mainstream. Last night’s Executive Order eliminating the CDFI Fund is contrary to the broad bipartisan support for the Fund and the work of CDFIs in communities across the country. '
"In fact, the President just signed the Full-Year Continuing Appropriations and Extensions Act, 2025, a law directing a continuation of the FY24 level of $324 million in appropriations for the CDFI Fund and $500 million in CDFI Bond Guarantee Authority for FY 2025. We encourage credit union system partners to reach out to their Congressional representatives and senators and make sure they know what this will mean in our communities."