Executive Order Limits the Community Development Financial Institutions Fund

On Friday, President Donald Trump signed an Executive Order (EO) restricting the Community Development Financial Institutions (CDFI) Fund to its statutory functions, with those functions limited to the minimum required by law. As a result, any grants must align with these statutory functions and remain subject to appropriations. Currently, the CDFI Fund oversees various grant programs—each with distinct goals—raising questions about which programs will be deemed statutorily permissible. 

The Treasury Department has until Friday, March 21, to recommend which activities can continue. Meanwhile, the Continuing Resolution passed by Congress on Friday maintains the CDFI Fund’s FY2024 appropriations level, with an anticipated $320 million available for grants in the 2025 award round. The CDFI Fund is still accepting applications for 2025 awards through March 21. 

FAQs on the CDFI Fund EO are available here. CrossState, America’s Credit Unions, leagues, Inclusiv, and others are actively assessing the EO and its potential impact on CDFI credit unions. Together we remain committed to advocating for adequate funding to support CDFI initiatives, while promoting accountability and transparency in the certification and designation processes.  

New Jersey and Pennsylvania credit unions who utilize the CDFI Fund are asked to reach out to Christina Mihalik with any questions or comments.