On Friday, October 10, the Trump Administration announced sweeping layoffs across multiple federal agencies as part of its response to the ongoing government shutdown—an unprecedented move that now includes the dismantling of the Community Development Financial Institutions (CDFI) Fund.
Among the agencies impacted is the U.S. Department of the Treasury, where the CDFI Fund is housed. Office of Management and Budget (OMB) Director Russ Vought confirmed the initiation of reductions-in-force (RIFs) targeting several departments, including Treasury and the Department of Housing and Urban Development (HUD).
The Native CDFI Network (NCN) has confirmed that all CDFI Fund staff have received RIF notices, effectively terminating their employment. According to an official Treasury memorandum, this action is part of a broader plan to abolish the CDFI Fund, based on a determination that its programs "do not align with the Administration’s current priorities."
The OMB’s memorandum states:
"This memorandum is to inform you that your position is being abolished, and you will be separated from the Federal service through Reduction In Force (RIF). This RIF is necessary to implement the abolishment of the Community Development Financial Institutions (CDFI), which is based upon the Department of the Treasury determination that its programs, projects, and activities do not align with the President’s priorities. This is your specific notice of how the RIF will affect you. You will be released from your competitive level and, based on your retention standing, you do not have an assignment right to another position in the competitive area. Consequently, you will be separated from the Federal service effective Saturday, December 13, 2025. You will continue in your present position during this specific notice period.”
The Native CDFI Network (NCN) responded to Friday's action in an email on Monday.
“The Administration’s actions announced on Friday are deeply disappointing and risk undoing decades of progress in Native community and economic development. My foremost concern is for the Native communities we serve and the disruption this could cause. NCN has engaged congressional offices on both sides of the aisle and will continue doing so immediately and through our Native CDFI Legislative Day on December 10th. We have until December 13th to get to work — this is the time for Native CDFIs and Native organizations to stand together, stay focused, and fight for the future of our communities," Pete Upton, CEO, Native CDFI Network, said.
The OMB’s action would also be devastating for the Native 502 Relending Program — a program that Congress just reaffirmed in the Senate’s passage of the National Defense Authorization Act (NDAA), according to Upton. This legislation recognizes the proven success of Native CDFIs in expanding homeownership across Indian Country by authorizing a permanent $50 million annual set-aside under Section 502 of the Housing Act. Any administrative action that delays or undermines this critical investment directly contradicts congressional intent and jeopardizes long-awaited progress toward housing equity in Native communities.
Under federal regulations, RIFs require at least 60 days' notice, unless the Office of Personnel Management (OPM) grants a waiver allowing for 30 days. While the White House has indicated that some staff could potentially be rehired if the government reopens, no guarantees have been offered. In the meantime, several lawsuits have been filed challenging the legality of the administration’s actions.
NCN remains deeply concerned about the implications of this decision for underserved communities, especially Native communities that rely on the CDFI Fund for critical financial services, economic development, and access to capital.
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