Ian P. Moloney, Head of Policy and Regulatory Affairs at the American Fintech Council (AFC), has issued a statement emphasizing the critical role of the Community Development Financial Institutions Fund (CDFI Fund). The statement comes in response to its inclusion in an Executive Order aimed at reducing federal bureaucracy.
Moloney stated, "The American Fintech Council (AFC) respectfully requests that the administration reconsider the inclusion of the Community Development Financial Institutions Fund (CDFI Fund) within the Executive Order on Continuing the Reduction of the Federal Bureaucracy." He acknowledged that while reforms are necessary for innovation and efficiency, CDFIs provide essential services across America.
He noted that CDFIs have significantly impacted both rural and urban areas traditionally underserved by financial institutions. They have contributed billions to revitalizing impoverished communities through initiatives like the New Market Tax Credit and Small Dollar Loan programs. According to Moloney, these efforts have increased credit access and supported investments yielding economic growth for small businesses and financial stability for consumers, aligning with President Trump's economic vision.
Moloney further expressed AFC's commitment to collaborating with the administration on reforming CDFI Fund programs. "We are committed to working with the administration to focus on opportunities to reform the CDFI Fund and its programs in a manner that would encourage responsible innovation at and more efficient operations across its programs," he stated.
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