In early 2025, the Native community development financial institution (CDFI) movement faced a potential blow when the administration of President Donald Trump issued a sweeping executive order that sought to reassess—and potentially cut—federal funding to a wide range of community investment initiatives, including the CDFI Fund and its critical Native American CDFI Assistance (NACA) program.
The move triggered swift and unified action from Indian Country, with Native CDFIs and their allies mobilizing at unprecedented speed to protect one of the few federal programs tailored to Indigenous economic self-determination.
A Direct Threat to a Vital Economic Lifeline
CDFIs—especially Native CDFIs—serve as vital financial infrastructure in underresourced communities, offering access to capital where traditional banks have long failed to invest. Native CDFIs are embedded in tribal communities and uniquely positioned to understand and serve their financial, cultural, and historical contexts. From providing startup capital to Native entrepreneurs, to supporting homeownership, to offering credit building programs and financial literacy education, these organizations are the lifelines of tribal economies.
The CDFI Fund is not just an economic program—it is a mechanism by which the federal government fulfills its trust and treaty obligations to tribal nations.
The Trump administration executive order, under the pretense of “streamlining federal investments,” painted the CDFI Fund—and, by extension, Native CDFIs—as programs in need of review, despite longstanding bipartisan support and overwhelmingly positive performance. In 2023, CDFIs posted a loan default rate of 0.36 percent. That is roughly half that of traditional banks.
Indian Country Responds
Recognizing the gravity of the threat, Oweesta, the longstanding national Native CDFI intermediary that I lead—and the Native CDFI Network (NCN) both moved swiftly. Together, we issued a joint letter opposing the executive order, signed by 84 Native CDFIs and Indian Country partners. The letter made a compelling case that the CDFI Fund is not just an economic program—it is a mechanism by which the federal government fulfills its trust and treaty obligations to tribal nations.
This work did not stop at issuing a letter. We launched a full-scale advocacy campaign, with template letters for CDFIs and tribes to send to their congressional representatives, the Treasury Department, and members of the Community Development Finance Caucus, as well as outreach efforts to media outlets, policy influencers, and financial sector allies, and most importantly—grassroots networks that could raise their collective voices in defense of Native financial sovereignty.
Congressional Allies Step Up
At the heart of Native CDFI work is a “relationship model of lending,” centered on redefining lending criteria to meet the needs of Native communities.Our efforts paid off. On March 19, a bipartisan group of 26 US senators (exactly half Democratic, half Republican) sent a letter to Treasury Secretary Scott Bessent, reaffirming their strong support for the CDFI Fund. The letter emphasized the proven track record of CDFIs—particularly Native CDFIs—and their essential role.
This level of congressional support is no accident. It is the direct result of years of relationship building by advocates of Native CDFIs, who have worked tirelessly to educate lawmakers about the unique role they play and the barriers Indigenous communities face when it comes to accessing capital. That groundwork proved invaluable when crisis hit.
Native CDFIs: Financial Pillars of Tribal Nations
To understand the significance of what’s at stake, it’s important to understand what Native CDFIs actually do. Unlike traditional banks, Native CDFIs don’t extract wealth from communities—they reinvest it. Their work ranges from small-business loans to community facilities development, homeownership support, credit-repair services, and culturally grounded financial education. Every loan or program is rooted in Native values, community priorities, and a long-term vision of sovereignty and self-sufficiency.
Take, for example, a Native entrepreneur in a rural Alaska village who dreams of launching a commercial fishing business. No traditional bank will fund her—the collateral is nonstandard, the geography is remote, and the economics are misunderstood. But a local Native CDFI understands both the cultural importance and the financial viability of her venture. It provides the capital, technical assistance, and wraparound support she needs—and in doing so, helps catalyze local job creation, food security, and intergenerational wealth.
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As Vanessa Roanhorse (Navajo), a cofounder of Native Women Lead, explains, at the heart of Native CDFI work is a “relationship model of lending,” centered on redefining lending criteria to meet the needs of Native communities. Jaime Gloshay (Navajo/White Mountain Apache/Kiowa), a fellow Native Women Lead cofounder, elaborates, saying that when you align lending with community needs, the results can be “transformational.”
Or consider the young family on a reservation in South Dakota looking to buy their first home. Because of redlining, historical displacement, and persistent underinvestment, they face extraordinary barriers. But their Native CDFI walks with them every step of the way—from credit building to down-payment assistance to mortgage financing—and helps them achieve what was once out of reach: stable housing, a yard for their children, and the pride of ownership.
Lakota Vogel (Cheyenne River Sioux), who leads Four Bands Community Fund in Eagle Butte, SD, explains that the work is about economic development, but it is about more than that. It is, as she points out, “nation building” work. And, in the case of helping Native people become homeowners, this work means finding a way to say “yes” to writing mortgages for dozens of homes sited on Native trust land where so many traditional banks have said “no.”
Native CDFIs are not going anywhere….They are more organized, more visible, and more unified than ever.
In short, the examples offered above aren’t just isolated success stories. They are the daily work of Native CDFIs, and the benefits accrue to tens of thousands of Native borrowers every year.
What Comes Next
The current challenge is more than a funding dispute—it’s a test of Indian Country’s ability to protect and expand its economic sovereignty in the face of political volatility. Native CDFIs are not asking for special treatment. They are demanding that the federal government honor its trust and treaty obligations, recognize the proven success of Native CDFIs, and commit to sustained investment in Indian Country’s future.
The community response has been resolute: Native CDFIs are not going anywhere. In fact, the effort to undermine them has only strengthened their resolve and deepened their partnerships. They are more organized, more visible, and more unified than ever.
That said, the fate of the CDFI Fund and NACA is still at risk. While the immediate threat of executive rollback has been mitigated by congressional intervention, continued vigilance is essential. Native CDFIs are preparing for upcoming budget cycles, working to build relationships with new members of Congress, and pushing for legislative language that would codify protections for Native-specific funding streams.
Meanwhile, Oweesta will continue to engage in fieldwide coordination, ensuring that Native CDFIs are not only reactive, but proactive. The ultimate goal is not just to defend the status quo, but to build more CDFIs, make more loans, and reach more communities.
This moment calls on allies inside and outside Indian Country to step forward.
Because Native CDFIs aren’t just fighting for funding, they’re building a better future—one loan, one home, one business, and one sovereign step at a time.
