Senator Ruben Gallego (D-AZ) joined a bipartisan letter urging the Trump Administration to reverse budget cuts for the Community Development Financial Institutions (CDFI) Fund.
The CDFI spurs economic growth in underserved and low-income communities by providing resources designed to attract private-sector investments in such areas and subsidize banks; some programs generate $10 for every $1 of federal money spent on them.
Last week, however, President Donald Trump signed an executive order cutting the CDFI as part of his effort to shrink the federal government overall.
The move generated opposition from some Senate Republicans, including Senator Mike Crapo (R-ID), who spearheaded the letter urging against the cuts with Senator Mark Warner (D-VA).
"Over 1,400 CDFIs represent a significant portion of America’s financial services sector, delivering over $300 billion in financial services each year to urban and rural communities across every state," the Senators wrote in the letter, adding, "The CDFI Fund’s public-private partnership model aligns with this Administration’s emphasis on ensuring that taxpayer dollars are spent efficiently and with measurable impact. Every federal dollar injected into a CDFI generates at least eight more dollars from private-sector investment."
After all, the letter continued, "Due in large part to the investments the Trump Administration made in the CDFI Fund in 2020, industry assets have tripled, and the number of CDFI-certified entities has risen by 40 percent."
Sen. Gallego has previously spoken against Trump's cuts to various government organizations, including the closure of the Bureau of Indian Affairs (BIA) Phoenix office, which he and Senator Mark Kelly (D-AZ) demanded answers for.
Earlier in March, Sen. Gallego also urged for the retaining of Veterans Crisis Line (VCL) staff at the Department of Veterans Affairs (VA), telling VA Secretary Doug Collins that "You affirmed during your confirmation process your commitment to addressing the epidemic of veteran suicide and to reaching at-risk veterans. Risking the loss of access to immediate, life-saving mental health resources is not congruent with that promise."
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