Community Development Bankers Association

Jennifer Scholtes at POLITICO reports that the White House Office of Management and Budget is putting a controversial “end-run” around Congressional funding power into practice.

CDBA identified this tactic as a risk to CDFI Fund programs in May of this year, with the delayed release of the FY 2025 Bank Enterprise Notice of Funding Availability, or “NOFA”. Any delay in releasing FY25 NOFAs, or rescinding funds for already announced FY 2025 awards such as the Financial Assistance (FA) and Native (NACA) awards, risks stalling critical financing from community development banks and other CDFIs that serve urban, rural, native and other low- and moderate-income communities.

Ms. Scholtes writes:

“The White House budget director has been persistently touting the virtues of ‘pocket rescissions,’ a tactic he has floated as a way to codify the spending cuts Elon Musk made while atop his Department of Government Efficiency initiative, and which the federal government’s top watchdog says is illegal. On Capitol Hill, leading GOP appropriators see Vought’s comments as another shot against them in an escalating battle with the Trump administration over Congress’ “power of the purse” . . .

‘Pocket rescissions are illegal, in my judgment,’ Senate Appropriations Committee Chair Susan Collins (R-Maine) said in a brief interview this week, ‘and contradict the will of Congress and the constitutional authority of Congress to appropriate funds.’”

Read the full article here:

White House floats new funding trick — and GOP lawmakers grimace The Republicans in charge of funding the government don't like what they're hearing from President Donald Trump's budget chief.

Thank you Michael Faulkender for your fireside chat at this year’s Peer Forum. We are grateful for the opportunity for our bankers to hear how the administration will work with them to improve their communities!

During the COVID-19 pandemic, Deputy Secretary Faulkender assisted in negotiating the CARES Act and was the senior Treasury official who led the implementation of the Paycheck Protection Program (PPP). The Emergency Capital Investment Program (ECIP) was also negotiated during his tenure.