WASHINGTON— A coalition of community development financial institution (CDFI) groups that that includes Inclusiv is urging the White House to immediately release more than $1 billion in already-approved federal funding, arguing the move could support the construction or preservation of roughly 100,000 affordable housing units nationwide.
In a March 19 letter to Kevin Hassett, director of the National Economic Council, the organizations praised the Trump administration’s recent housing initiatives while calling for faster deployment of existing funds to address persistent housing shortages.
The letter was first shared by CU Strategic Planning.
The groups cited actions by Donald Trump and Congress, including expansion of the Low Income Housing Tax Credit under the One Big Beautiful Bill Act and passage of the 21st Century ROAD to Housing Act, as well as a March 13 executive order aimed at reducing regulatory barriers to housing construction.
‘Essential Providers’
“CDFIs are essential providers of predevelopment and acquisition loans, bridge loans, and construction and permanent financing that make affordable housing deals possible,” the letter states, noting that the institutions leverage limited federal dollars into significantly larger private-sector investment flows.
The coalition said more than $1 billion in federal funding is currently “waiting to be deployed,” including:
- $289 million in FY2025 appropriations for the CDFI Fund
- $324 million in FY2026 appropriations for the CDFI Fund
- $535 million through the Capital Magnet Fund
- At least $200 million from the Emergency Capital Investment Program
Boost for Affordable Housing
The groups asked the White House to direct the Office of Management and Budget to release the funds immediately, arguing the investment would accelerate affordable housing development, stimulate construction employment and attract additional private capital.
“Immediately putting these funds to work would infuse much-needed capital into affordable housing projects,” the letter states, adding that such action would build on the administration’s housing affordability efforts.
The organizations emphasized that the Treasury Department’s CDFI Fund has long enjoyed bipartisan support and remains a key mechanism for channeling investment into underserved communities.
The Signees
The letter was signed by the following organizations:
- National Association of Affordable Housing Lenders
- Capital Magnet Fund Coalition
- Coalition of Community Development Financial Institutions (CDFI Coalition)
- Community Development Bankers Association
- Community Development Venture Capital Alliance
- Inclusiv
- National Association for Latino Community Asset Builders
- National NeighborWorks Association
- Native CDFI Network
- Opportunity Finance Network
- Oweesta Corporation
- Partners for Rural Transformation
Copies of the letter were also sent to Office of Management and Budget Director Russell Vought, Treasury Secretary Scott Bessent, Deputy Chief of Staff James Blair and the Community Development Finance Caucus.
