Senator Chuck Schumer is sounding the alarm over a new executive order signed by former President Donald Trump that he says could gut a key lifeline for small businesses, homebuyers, and affordable housing across the Finger Lakes and Central New York. The order seeks to dismantle the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund—a move Schumer says would eliminate a program that has delivered over $430 million in capital to the two regions.
“Cutting off Upstate NY from this Main Street lending program would be a disaster,” Schumer said, citing the CDFI Fund as a critical source of capital for areas underserved by traditional banks.
According to Schumer, CDFIs in Central New York have helped more than 1,600 businesses and provided nearly 2,400 mortgage and consumer loans, leveraging over $361 million in total investment. In the Rochester-Finger Lakes region, CDFIs supported more than 900 businesses and 143 families with affordable loans, channeling nearly $72 million into the local economy. These investments funded small business growth, affordable housing, and infrastructure improvements that otherwise may have gone unrealized.
The CDFI Fund, created in 1994, provides federal investment to a national network of lenders that target underserved urban and rural communities. These institutions offer low-cost loans for small businesses, community facilities, and affordable housing—areas that often fall through the cracks of conventional banking. Each dollar from the fund typically attracts eight more in private investment, creating a multiplier effect that Schumer said is irreplaceable.
Local advocates backed the senator’s warning. “Support from the CDFI Fund allows us to maximize our impact in New York’s low-income areas—urban, rural and everywhere in between,” said Colleen Ryan, executive director of the NYS CDFI Coalition. She emphasized that CDFIs not only recycle loan funds into new projects but also provide technical assistance to borrowers, helping them succeed long-term.
Schumer said Trump’s proposal would blow a $5 billion hole in New York’s community lending sector, raising borrowing costs and stalling housing and small business projects across the state. He is now leading a bipartisan group of senators urging Treasury officials to reverse the plan and preserve the fund’s role in strengthening local economies.
“This isn’t about politics—it’s about real people trying to buy their first home, open a business, or keep a family-owned shop on Main Street afloat,” Schumer said. “We must protect one of the most effective, cost-efficient tools we have to lift up communities like the Finger Lakes and Central New York.”
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