212 Community Development Organizations Call On Congress To Restore CDFI Funding That Boosts Growth

Congress should reassert the power of the purse by restoring Community Development Financial Institution (CDFI) funding and programming recently frozen by the Executive Branch, the National Community Reinvestment Coalition (NCRC) and 211 local community development advocates urged in a letter to legislators on Friday, February 28.

"Investing in CDFIs should not be a partisan issue," the groups wrote to Sen. Bill Hagerty, Sen. Jack Reed, Rep. David Joyce and Rep. Steny Hoyer. "CDFIs exist in both Democrat-majority districts and Republican-majority districts and have helped working Americans, regardless of their political party, to access affordable loans and investments."

The amount of money in question is $354 million - the previously proposed level of CDFI Fund appropriations at issue in budget discussions late last year - which is approximately four one-hundredths of one percent of the 2024 annual non-defense discretionary budget.

"CDFIs have boosted economic growth in urban, rural and tribal communities by expanding small businesses and increasing the supply of affordable housing," said Mac McNeil, President of NCRC Community Development Fund . "Anyone who cuts crucial CDFI programs and services should be prepared to deal with the consequences: loss of jobs, higher costs, and an overall weakened economy. That's why 211 community development organizations of our national coalition urge Congress to protect the CDFI Fund - before it's too late."

The coalition letter reflects concern about both appropriations for the federal CDFI Fund itself and the effective freezing of three related programs by the Treasury Department.

"We also ask that you urge Treasury Secretary Scott Bessent to reject the Department of Government Efficiency's (DOGE) recommendation to cancel external contracts to evaluate applications for the New Market Tax Credits (NMTC) Program, the CDFI Technical Assistance/Financial Assistance Program, and the Native American CDFI Assistance (NACA) Program," the letter reads. "A halt in reviewing applicants and disbursement of funds will disrupt thousands of CDFIs' ability to deliver critical services, such as small business lending and affordable housing development."

Read the full letter here . The following organizations joined NCRC in signing it:

Community Economic Development Center of Southeastern Massachusetts, Inc.

IRC's Center for Economic Opportunity (IRC-CEO)

Dorchester Bay Economic Development Corporation

Little Haiti Housing Association, Inc

Local Enterprise Assistance Fund (LEAF)

Sowing Empowerment & Economic Development, Inc

Opportunity Communities

Housing Assistance Council

Nonprofit Finance Fund

Gateway Community Development Corporation

Entrepreneurship for All

Quabag Valley Community Development Corporation

Worcester Community Housing Resources

St. Louis Equal Housing & Community Reinvestment Alliance (SLEHCRA)

R.A.A. - Ready, Aim, Advocate

ProsperUs Detroit

Finanta

Rural Housing Coalition of New York

Community Development Network of Maryland

Boston Impact Initiative Fund

Coalition for Nonprofit Housing and Economic Development

Beneficial State Foundation

Our Neighborhoods Capital Fund

Self-Help Housing Corporation of Hawaii

Living Cities

River Cities Development Services

New Jersey Citizen Action

JEDI

ICA Fund

Virginia Community Voice

Beneficial State Bank

The McKnight Foundation

North East Housing Initiative

Urban Land Conservancy

Excellerate Foundation

Pillsbury United Communities

Change Machine

Renewable Manufacturing Gateway dba Community Growth Fund

Local First Arizona

North East Housing Initiative

Alternatives FCU

Regional Housing Legal Services

California Capital Small Business Financial Development Corporation

The Greenlining Institute

THE HOUSING FUND INC.

Balfour Beatty US

Universal Housing Solutions CDC

Global Detroit

First Community Capital

Community Development Corporation of Oregon

Washington Homeownership Resource Center

Income Movement

Alternatives Federal Credit Union

Rockland Housing Action Coalition

Southwest Georgia United

Growth Partners Arizona

Business and Community Lenders (BCL) of Texas

Atlanta Land Trust, Inc.

Minnesota Consortium of Community Developers

Welfare Reform Liasion Project, Inc.

Community Housing of Wyandotte County, Inc.

Movin' Out, Inc.

Neighborhood Development Foundation

Amplify Equity, Inc.

New Jersey Community Capital

United South Broadway Corporation

Atlanta Neighborhood Development Partnership

Association for Enterprise Opportunity (AEO)

Association for Neighborhood & Housing Development

Massachusetts Association of Community Development Corporations

NeighborWorks Southern Colorado

Habitat for Humanity St. Tammany West

Community and Shelter Assistance (CASA) of Oregon

MS Communities United for Prosperity (MCUP)

Southside Organizing Center

African American Alliance of CDFI CEOs

U SNAP BAC INC

Harlingen Community Development Corporation

Prosperity Unlimited, Inc.

HomeBase Cincinnati

Habitat for Humanity St. Tammany West

Genesee Co-op Federal Credit Union

Friends of the Public Bank East Bay

CIELO

Cooper Foundation

Matt Hull

Talitha Consults LLC

Woodstock Institute

Metro Milwaukee Fair Housing Council

United Way of Central Ohio

Neighborhood Allies

NewCorp, Inc.

American Nonprofits

Pennsylvania Assistive Technology Foundation

Infinite Erie

Maura Shenker Solutions, LLC

Enterprise Development Fund

The Urban Child Institute

Uptima Entrepreneur Cooperative

UnmaskEDU, LLC.

Neighborhood Development Foundation

The Acceleration Project

Our Neighborhoods Capital Fund

Cafe Chadra Inc.

Chrysalis Consulting Group

Beyond Housing, Inc.

EAH Housing

Urban Strategies, Inc. (USI)

Thomas W. Briggs Foundation

Hyde Family Foundation

Sankofa CDC

United Way of King County

Society of the Flora, Fauna & Friend

The Barra Foundation

People's Housing+

Verity Credit Union

Consumer Action

City of Detroit

Public Profit

Main Street Launch

Resilient Insurance Inc

Mexican American Unity Council, Inc. (MAUC)

Henry Family

Homestead Resources

Crowley, White, Helmer, & Sevig

African Community Housing & Development

United Way of Central Arkansas

California Association for Micro Enterprise Opportunity Network

Asset Funders Network

West Oakland Job Resource Center

Habitat for Humanity of Michigan

Hope Community, Inc.

Cornell University

Garrett County Community Action

Jewish Family Services of Washtenaw County

Women's Foundation of Montana

The Equity Practice

Pathfinders

Financial Empowerment Network

Lighthouse Silicon Valley

Citizen Potawatomi CDC

Small Business Majority

Florida Home Partnership, Inc.

South Dallas Fair Park ICDC

National CAPACD- National Coalition for Asian Pacific American Community Development

Project Vida/ El Paso Collaborative

The LOVE Building

Community Opportunity Alliance

Southern Dallas Progress Community Development Corporation

Local Initiatives Support Corporation (LISC) - Toledo

Prosperity Indiana

Circle Homes, Inc.

United South Broadway Corporation

Utah Housing Coalition

McLennan Community Investment Fund

The Sacramento Environmental Justice Coalition

ICON CDC

Local Initiatives Support Corporation (LISC)

Housing Oregon

Texas Afterschool Centers on Education Fund

Massachusetts Association of Community Development Corporations

Pacific Asian Consortium in Employment

TMC Community Capital

SouthFair Community Development Corporation

Avenida Guadalupe Association

Water for SandBranch Coalition

Neighborhood Housing Services of Greater Berks, INC

Impact Ventures

Houston Habitat for Humanity

Texas Housing Foundation

Culturingua

Brazos Valley CDC, Inc.

Five Points Community Capital, LLC

Business and Community Lenders (BCL) of Texas

Exodus Lending

Florida Housing Counselor Netw

THE HOUSING FUND INC.

Neighborhood Housing Services of Waterbury

Credit Builders Alliance

Chicago Community Loan Fund

Washington Area Community Investment Fund

Minority Business Development Institute

Black Business Investment Fund (BBIF)

Central Baptist Community Development Corporation

Freedom Equity Inc.

Rise Economy

Clover Inc.

Elevation Community Land Trust

Leviticus 25:23 Alternative Fund, Inc.

North Alabama Revolving Loan Fund LLC

Washington Homeownership Resource Center

Pima County Community Land Trust

African American Alliance of CDFI CEOs

Dayton Region New Market Fund

Illinois Facilities Fund

Homestead Resources

Newcap Inc.

Thredz.org

Ceiba

Grounded Solutions Network

United Housing, Inc.

Communities Unlimited, Inc.

Local Enterprise Assistance Fund

Center for LGBTQ Economic Advancement & Research (CLEAR)

Housing Options & Planning Enterprises, Inc.

Capital For Change, Inc

QueerSeed Collective

Washington State Employee Credit Union

SC UpLift Community Outreach

Neighborworks of Sacramento

People's Opportunity Fund