U.S. Rep. Young Kim (R-CA) and 106 Republicans reaffirmed their broad support for the Community Development Financial Institutions (CDFI) Fund, and urged the administration to prioritize its operations during the federal government shutdown.
“The CDFI Fund is an engine for our economy and a springboard for everyday Americans — helping small businesses get off the ground, expanding access to housing, and creating jobs across the country,” Rep. Kim said. “The CDFI Fund enjoys strong Republican support, and I hope it will continue to empower Main Street and drive long-term economic growth.”
Rep. Kim and her colleagues sent an Oct. 23 bicameral letter to U.S. Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought reiterating that it is unclear how specific programs will continue to operate if the CDFI Fund’s obligations cease to function.
“While we understand difficult decisions must be made amid the ongoing Democratic government shutdown and our nation’s unsustainable fiscal trajectory, eliminating all work done by the CDFI Fund will negatively impact our economy long-term,” wrote Rep. Kim and her colleagues.
The lawmakers pointed out that the CDFIs and developers who rely on a functioning CDFI Fund are essential to expanding the nation’s housing supply, are key drivers of development and preservation of affordable housing, and the Capital Magnet Fund is a tool used by the CDFI Fund to scale housing investments to build new housing and bring down housing costs, according to the letter.
“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,” they wrote.