Heinrich Blasts Trump for Firing Federal Workers Who Help New Mexicans Access Small Business & First-Time Homeowner Loans

WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), a member of the U.S. Senate Appropriations Committee, released the following statement blasting the Trump Administration for firing all workers at the Community Development Financial Institutions (CDFI) Fund.

The CDFI Fund is instrumental in helping New Mexicans access loans to become first-time homeowners and small business owners. It also administers the New Market Tax Credits, which help finance affordable housing and community amenities. Without staff to administer these credits, projects in New Mexico will face delays.

“Donald Trump and Congressional Republicans are actively trying to tank our economy. Health care premiums are skyrocketing, grocery and utility bills are up, and cars are unaffordable for most working families. Instead of trying to help, Trump is firing the folks who help New Mexicans afford their first home or start their own small business,” said Heinrich. “Republicans control the House, the Senate, and the White House. It’s time Republicans get serious, come to the negotiating table, and work with Democrats to lower costs and protect working families’ livelihoods. Not attempt mass firings at agencies that help deliver for New Mexicans every day.”

“As the largest CDFI in New Mexico, Homewise is able to access capital that allows us to achieve our mission of helping New Mexicans become homeowners and strengthening the neighborhoods they live in. At a time when modest income New Mexicans are struggling to afford housing, the CDFI Fund staff are a powerful tool for helping New Mexicans achieve the dream of homeownership,” said Mike Loftin, CEO, Homewise.

“Through the CDFI Fund’s support, organizations like DreamSpring have been able to help thousands of small business owners in rural communities and cities across New Mexico and the country access affordable loan capital, create local jobs, and provide needed goods and services,” said DreamSpring’s Acting CEO Marisa Barrera. “For every dollar invested in CDFIs, communities see exponential returns in economic growth and opportunity. Full staffing at the CDFI Fund supports DreamSpring to carry out our mission of uplifting small business and strengthening the economy.”

Background:

This week, the Office of Management and Budget (OMB) laid off Community Development Financial Institutions (CDFI) Fund staff who were responsible for supporting a vital financial lifeline for underserved communities in New Mexico and nationwide.

CDFIs are certified by the U.S. Department of the Treasury and provide loans and financial services in areas where traditional banks often do not invest. This certification, carried out annually by the staff at the CDFI Fund, allows local lenders in New Mexico to access funding and partnerships with larger banks that are required by the 1977 Community Reinvestment Act to invest in all communities, including low- and moderate-income neighborhoods. One of the most impactful areas of this work is financing affordable housing. A delay or inability to recertify New Mexico CDFIs jeopardizes their access to additional private capital, which is reinvested in New Mexicans.

CDFIs in New Mexico have provided $1.5 billion in loans and grants to local businesses, nonprofits, families, and community organizations. This funding has made a real difference on the ground — playing a key role in New Mexico’s economic development:

$134 million in direct financial assistance to New Mexico-based CDFIs;

$346 million through New Market Tax Credits and bond programs;

$825.9 million to support 873 home purchases and improvement projects;

$179.5 million to help 1,500 first-time homeowners;

$600,000 to provide 419 consumer loans;

Financed 257 affordable housing units;

Created 7,400 permanent jobs and 602 construction jobs; and

Built or rehabilitated over 154,000 square feet of commercial real estate space.

New Mexico is home to 17 CDFIs, including credit unions, loan funds, housing organizations, and small business lenders. These institutions are based in communities across the state, from Albuquerque and Santa Fe to Gallup, Tucumcari, and Tribal lands. They offer everything from homebuyer education and mortgage assistance to small business loans and financial literacy programs.

CDFIs also serve Native communities in powerful ways:

Tiwa Lending Services in Isleta Pueblo provides home and consumer loans to Native families in surrounding counties;

Native Community Capital in Laguna Pueblo offers home and business loans to tribal members, promoting self-determination through economic opportunity; and

Native Partnership for Housing in Gallup supports Native and non-Native families with homebuyer education, mortgage lending, and counseling — all while being the only Native CDFI in the country with federal certification, nonprofit status, and HUD counseling approval.

Examples of CDFIs at work:

Homewise, based in Santa Fe, helps families buy their first homes with affordable mortgages, down-payment assistance, and even builds homes using federal tax credits.

The Santa Fe Community Housing Trust has expanded homebuyer lending thanks to nearly $1.5 million in federal support over the last few years.

DreamSpring, a small business lender originally founded in New Mexico, has helped thousands of entrepreneurs in 27 states.

WESST provides small business training, startup support, and microloans with a focus on women and underserved entrepreneurs.

Guadalupe Credit Union and Nusenda Credit Union are both recognized for their commitment to serving Hispanic, immigrant, and low-income communities through affordable financial services.

CDFIs, via the CDFI Fund’s programs and certification, are one of the most effective tools the federal government has to generate investments in people and places that are often left out of the traditional financial system. Laying off the staff who manage and grow this program threatens the success of these institutions and the New Mexico communities they serve.

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