Joint Center Condemns the Elimination of the Community Development Financial Institutions Fund Staff

FOR IMMEDIATE RELEASE
Oct. 15, 2025

WASHINGTON D.C. — The Joint Center for Political and Economic Studies condemns the Trump administration’s decision to terminate the entire staff of the Treasury Department’s Community Development Financial Institutions (CDFI) Fund. This sweeping action dismantles one of the federal government’s most effective and bipartisan tools for ensuring access to capital in underserved communities.

For nearly 30 years, the CDFI Fund has strengthened local economies by supporting community banks, credit unions, and loan funds that provide financing to small businesses, affordable housing, and vital infrastructure. These institutions fill critical gaps in financial access that mainstream lenders have historically ignored, particularly in Black, Latina/o, Native American, and rural communities.

“Eliminating the CDFI Fund’s staff effectively halts programs that have delivered billions in investments to the communities that need them most,” said Dedrick Asante-Muhammad, President of the Joint Center. “This is not a neutral bureaucratic move — it’s a direct attack on inclusive economic growth. By stripping away the nation’s community finance infrastructure, this administration is signaling that equitable development is no longer a federal priority.”

The CDFI Fund’s programs — including the New Markets Tax Credit, Bank Enterprise Award, and Native Initiatives — have supported local investment, created jobs, and leveraged billions in private capital for every federal dollar spent. Amid the government shutdown, those efforts come to an immediate halt without staff to administer these programs and lead to devastating consequences for the very communities most in need of economic stability.

Sophia Kerby, Joint Center Vice President of Government Affairs, added, “The CDFI Fund has long been a bipartisan success story. Leaders across the aisle have recognized that when we invest in community financial institutions, we invest in America’s small businesses, workers, and neighborhoods. Eliminating its staff betrays that consensus and undermines decades of progress.”

The Joint Center calls on Congress to take bipartisan action to swiftly restore the CDFI Fund’s staffing and capacity and to reaffirm its commitment to inclusive economic growth.

“At a time when Black unemployment is rising and racial wealth gaps persist, dismantling the CDFI Fund is both cruel and shortsighted,” continues Asante-Muhammad. “Congress must step in to ensure this vital institution continues to serve the communities that drive our nation’s economic future.”

About the Joint Center for Political and Economic Studies 
The Joint Center for Political and Economic Studies, America’s Black think tank, provides compelling and actionable policy solutions to eradicate persistent and evolving barriers to the full freedom of Black people in America. We are the trusted forum for leading experts and scholars to participate in major public policy debates and promote ideas that advance Black communities. We use evidence-based research, analysis, convenings, and strategic communications to support Black communities and a network of allies.