another friday night massacre of a very succesful program that funds small businesses across america small town america getting served up on a platter by dear leader 'Lifeline': GOP revolts as Trump orders 'maximum' cuts for popular lending program Late Friday night, March 14, President Donald Trump issued an executive order telling federal agencies to cut the Community Development Financial Institutions Fund (CDFI Fund) "to the maximum extent." The CDFI Fund, established via the Riegle Community Development and Regulatory Improvement Act of 1994, provides loans to small businesses in poorer areas — urban and suburban as well as rural — that are underserved by banks. On X, formerly Twitter, Rep. Young Kim (R-California) posted, "The CDFI Fund is a lifeline for underserved populations to access capital & directly supports multiple Orange County credit unions that serve our community. This partnership represents the best of public-private sector collaboration & deserves our continued bipartisan support." Hapgood, in an article published by Politico on March 19, cites House Financial Services Chairman French Hill (R-Arkansas) and Senate Banking Committee Chairman Tim Scott (R-South Carolina) as two other examples of Republicans who have "historically been strong proponents of the targeted fund." "Trump's proposal to cut the (CDFI) Fund crosses into an area lawmakers are loath to touch — assistance for the Main Street business community many GOP members turned to for support during the election," Hapgood explains. "The (Trump) Administration's latest action, which could more heavily impact red districts, may show the limits of Republican support for the Administration's cost-cutting crusade…. From the inception of the CDFI Fund in 1994 through February 2025, Arkansas-headquartered CDFIs have received $187.9 million from the fund and South Carolina- headquartered CDFIS have received $75.3 million, according to the CDFI Coalition, an industry advocacy group."
When they see "community development" they think black/brown people are getting money, it really goes no farther than that intellectually.
If it is simply tremendously easier for rich people to start businesses, then that will help ....... well, rich people. So this checks out.
Bessent pushing back Bessent Resists DOGE Cuts That Put Low-Income Lending Program Under Fire President Donald Trump’s aggressive government cost-cutting agenda is forcing his Treasury chief to balance support for that mission with efforts to protect a crucial financial lifeline for millions of low-income Americans. Treasury Secretary Scott Bessent is trying to preserve the Community Development Financial Institutions Fund, while also adhering to an order from Trump that his department reduce the initiative to the maximum extent allowed by law, according to people familiar with the matter who aren’t authorized to speak to the media. At stake is more than $300 billion of mortgages and loans for small businesses and commercial real estate projects in low-income communities, largely across Republican-controlled states including Mississippi and Louisiana. This infusion of capital into under-served communities comes from lenders known as community development financial institutions. A White House executive order on Friday named the CDFI Fund on a list of governmental entities that should “reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law.” The order is part of the Elon Musk-led Department of Government Efficiency’s efforts to “reduce the federal bureaucracy.” The order, which came just hours after Congress authorized a fresh $324 million infusion for the fund, caught CDFI industry officials by surprise. Just two months earlier, Bessent had described the program as “very important” during his confirmation hearing; Trump was seen as a supporter too, after expanding the pool of cash the CDFI Fund could distribute to lenders in his first term.
