Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Capital on the Frontier Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

Budget Watch: Trump seeks to gut CDFI Fund that boosts investment in low-income communities

Taking the president’s “America First” budget as an expression of Trump’s priorities, it seems poor urban and rural communities don’t rank very high.

The President’s budget calls for all but eliminating the Treasury Department’s Community Development Financial Institutions Fund, which makes loans to local banks and other institutions that invest in low-income communities (see, “#CDFIsInvest in U.S. jobs and businesses”).

Last year, Congress appropriated $233 million to the CDFI Fund. That led to $2.1 billion loans and investments that created 28,000 jobs in poor communities, according to FastCompany.

President Trump wants to slash the fund by $210 million, to $19 million. The funding cuts would harm “precisely the communities President Trump seeks to help, including hollowed out inner-city neighborhoods and economically distressed rural communities,” said James R. Klein, president of the CDFI Coalition.

For a taste of what CDFIs do, read ImpactAlpha’s trove of CDFI stories.

This post originally appeared in ImpactAlpha’s daily newsletter. Get The Brief.

Photo credit: kdoc856

You might also like...