By Hank Russell
U.S. Congressman Andrew Garbarino (R-Patchogue) joined 100 other elected officials in signing a letter to Treasury Secretary Scott Bessent and Office of Management and Budget Director Russell Vought, affirming support for the Community Development Financial Institutions (CDFI) Fund that would support smaller and mid-sized banks.
The letter highlights the CDFI Fund’s critical role in expanding access to capital, supporting small businesses, increasing affordable housing, and promoting economic growth in communities that need it most.
Garbarino said the letter “urges the administration to continue carrying out the fund’s statutory obligations to ensure private investment reaches states and districts across the country, strengthening local economies and creating new opportunities for working families.”
Bessent has been a supporter of community banks since he was sworn in as Treasury Secretary. “This Administration recognizes the important role that the CDFI Fund and CDFIs play in expanding access to capital and providing technical assistance to communities across the United States,” Bessent said. “CDFIs are a key component of President Trump’s commitment to supporting Main Street America in the pursuit of job growth, wealth creation, and prosperity.”
On October 31, Hagerty (R-Tennessee) introduced legislation that would raise the Federal Deposit Insurance Corp. (FDIC) insurance limits for smaller banks to create a more level playing field with the larger banks. Bessent and Hagerty said there has been an imbalance in favor of the bigger banks, thanks to the Dodd-Frank Act. Since 2010 — when the Dodd-Frank Act was enacted — 3,600 community banks closed nationwide.
“A strong and stable American banking system must include small and midsize banks, too,” Bessent and Hagerty wrote in The Wall Street Journal. “Compared with large outfits, community banks allocate a much higher proportion of their assets to small business and retail lending.”
Garbarino echoed Bessent and Hagerty’s comments. “I will always fight for access to financial services in underserved communities to enable investment and growth in local small businesses and our communities.”