recent executive order on eliminating non-statutory functions of cdfi fund

On Friday, March 14 President Trump issued an executive order which directs elimination of non-statutory functions of the Community Development Financial Institutions (CDFI) Fund, among other federal government entities. The CDFI Fund, housed in the Treasury Department, promotes economic revitalization through investment and assistance to CDFIs including administration of two statutorily authorized federal programs—the Capital Magnet Fund and the New Markets Tax Credit.

Following, the Treasury Department released a report dated March 21 that notes the CDFI Fund is performing its statutory functions as required by law, and that the Treasury Department will evaluate the fund on an ongoing basis.

CHFA is grateful for the strong bipartisan support of the CDFI Fund, especially from members of the CDFI Caucus, which includes Colorado Senator John Hickenlooper. Co-chairs of the CDFI Caucus, Senators Mike Crapo (WY) and Mark Warner (VA) issued a statement of support following the executive order and noted in a letter sent to Treasury Secretary Scott Bessent the critical role the CDFI Fund plays in communities through the country. The letter was signed by 23 senators including Senator Hickenlooper.

By way of background, the Capital Magnet Fund is authorized by the Housing and Economic Recovery Act of 2008 and the New Markets Tax Credit is authorized by the Community Renewal Tax Relief Act of 2000.

Both the Capital Magnet Fund and New Markets Tax Credits provide beneficial impact to Coloradans. To date, CHFA has deployed $38.1 million in Capital Magnet Fund awards to 46 affordable rental housing developments supporting more than 3,000 units. The flexible gap financing provided by the Capital Magnet Fund is crucial for developments supported by the Housing Tax Credit in areas of economic distress. In addition, through CHFA’s Community Development Entity, the Colorado Growth and Revitalization Fund has awarded and deployed more than $303.8 million in New Markets Tax Credits to support 33 businesses in communities across the state.

In 2024, CHFA applied for and received a Capital Magnet Fund award of $4.5 million and a New Markets Tax Credit allocation of $65 million, which are competitively awarded. As these resources have been received by CHFA, we remain confident in CHFA’s ongoing ability to deploy these resources to eligible applicants; and, we strongly urge Congressional support for CDFI’s ongoing ability to operate both the Capital Magnet Fund and New Markets Tax Credit programs in future years, as well as support to ensure the CDFI Fund has the resources it needs to continue its oversight and secure the future of the programs.