DateIssued:March14,2025
Topic:EconomicOpportunity,Education,GlobalAffairs,Housing
Thisactioneliminatesthenon-statutorycomponentsandreducesthe statutoryfunctionsandworkforceofthefollowinggovernmententities:
TheCommunityDevelopmentFinancialInstitutionsFund
TheFederalMediationandConciliationService
TheInstituteofMuseumandLibraryServices
TheMinorityBusinessDevelopmentAgency
TheUnitedStatesAgencyforGlobalMedia
TheUnitedStatesInteragencyCouncilonHomelessness
TheWoodrowWilsonInternationalCenterforScholarsinthe
SmithsonianInstitution
HOWWILLTHISPRESIDENTIALACTIONBEENFORCED?
Thisactionsignificantlyreducesthefunctionsofsevenfederalagencies thatPresidentTrumpdeemedtobe“awasteoftaxpayerdollars.”
Theactionmandatesthattheheadsoftheaffectedagenciessenda reporttotheDirectoroftheOfficeofManagementandBudget(OMB) affirmingtheirfullcompliancewiththeorderandoutliningthestatutorily requiredfunctionsoftheirentitybyMarch21,2025.
TheactionalsoinstructstheDirectorofOMBandotherentitiesthat overseegrantstorejectanyfundingrequestsfromtheaforementioned agenciesiftheyareinconsistentwiththisorder.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
ThisactiongutssevengovernmententitiesthatprovideBlackcommunitieswith everythingfromaccesstoeducationalmaterialstoeconomicempowerment.Of theagencieslistedwithinthispresidentialaction,thefiveoutlinedbelowhave themostconsequentialpolicyimplicationsforBlackAmericans.
CommunityDevelopmentFinancialInstitutionsFund
CongresspassedtheCommunityDevelopmentFinancialInstitutionsFund (CDFIFund)undertheRiegleCommunityDevelopmentandRegulatory ImprovementActof1994andhasbeeninoperationfor30years.TheCDFI FundispartoftheTreasuryDepartmentandusesfederalresourcesto attractprivatesectorfundsthataretheninvestedinlow-income communities.Community-basedorganizationsleadCDFIFundallocation, whichhasbeenusedtodevelopaffordablehousing,createsmall businesses,andexpandoncommunityfacilities.TheCDFIFundcurrently providesfinancialbackingforover1,400smalllendersthatserviceareasthat lackamajorbankinginstitution.CDFIssupportBlackcommunitiesbutalso arepopularinlessdiverse,ruralareas.Bymovingtoeliminatethisprogram, PresidentTrumpislimitingeconomicopportunityinsomeofthepoorest areasinthecountry,includingincommunitiesthatoverwhelminglyvotedfor himinthe2025election.
InstituteofMuseumandLibraryServices
CongressestablishedtheInstituteofMuseumandLibraryServices(IMLS)in 1996andwasmostrecentlyreauthorizedin2018.Asthesolefederalagency thatsupportsAmerica’slibraries,theIMLSgoesbeyondlendingbooks, fundingliteracyprogramsforchildrenandprovidingaccessiblematerialsfor peoplewithdisabilities,likebrailletextsandaudiobooks.APewResearch Centerstudyfoundthatover50%ofBlackpeoplevisitalibraryatleastonce ayear,andthisexecutiveorderwillshutterpubliclibraryservicesacrossthe country.TheIMLSalsoprovidesgrantstomuseumsandnon-profit organizationsthatupliftBlackcommunities.Theorganizationhadallocated $6millionofits2025budgettosupportAfricanAmericanhistorymuseums, andthisactionputsthatfundinginjeopardy.Thisisespeciallyperilousgiven thatBlackhistoryisalsobeingremovedfromschoolcurriculumsandfederal trainingprograms.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
MinorityBusinessDevelopmentAgency
PresidentRichardNixonestablishedtheMinorityBusinessDevelopment Agency(MDBA)throughanexecutiveorderin1969,acknowledgingthe “significantcontributionsofminoritybusinessenterprisestothenation's economyandoverallwelfare.”Minoritybusinessenterprises(MBEs)are definedasfor-profitbusinessesthatareprimarilyownedormanagedby aU.S.residentwhois“sociallyoreconomicallydisadvantaged.”In2024,a federaljudgeruledthatraceandethnicitycouldnotbeincludedin grantmakingdecisionsbytheMBDA,whichignoresthedisparitiesthat exist.Forexample,lessthan3%ofemployer-ownedfirmsin2021were operatedbyBlackpeople.
TheMBDA’smissionisto“promotethegrowthandglobalcompetitiveness ofMinorityBusinessEnterprises(MBEs)inordertounlockthecountry’sfull economicpotential.”Overthefifty-fiveplusyearssinceitscreation,ithas hadgreatsuccessindoingso.In2024,theMDBAhadanetworkofover 100grantsthatsupported9.7millionminority-ownedbusinessesinallU.S. statesandterritories.Inthe2023fiscalyear,theMBDAsupportedMBEsin creatingormaintainingnearly20,000jobsandleveraging$1.5billionin capitaltoearnover$3.8billionworthofcontracts.
Accordingtoa2022PewResearchCentersurvey,nearly60%ofBlack AmericansseesupportforBlack-ownedbusinessesasaveryeffective strategyforachievingracialequality.Byeliminatingcrucialpersonneland denyingtheMBDA’sfundingrequests,theTrumpAdministrationisputting thousandsofBlackbusinessesinjeopardy,whichcouldhavelong-term impactsontheeconomicmobilityofBlackAmericans.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
UnitedStatesAgencyforGlobalMedia
CongressfoundedtheU.S.AgencyforGlobalMedia(USAGM)in1999asa provisionintheInternationalBroadcastingAct.Itsmissionisto“inform, engage,andconnectpeoplearoundtheworldinsupportoffreedomand democracy.”Theagencyoverseesseveralinternationalmedia organizationsthatproduceunbiasedjournalisminregionsoftheworld thatdonothavefreespeech,includingtheMiddleEastandNorthAfrica. ThispresidentialactionleavesmembersoftheglobalBlackcommunity vulnerabletopoliticaldisinformationbycuttingthefundingrequiredto maintainthesenewsrooms.
UnitedStatesInteragencyCouncilonHomelessness
CongressestablishedtheU.S.InteragencyCouncilonHomelessness (USICH)asapartoftheStewartB.McKinneyHomelessAssistanceActof 1987andwasmostrecentlyreauthorizedin2009.Theorganizationwas foundedtoconsolidatefederaleffortstocombathomelessnessandto fosterpublic-privatepartnershipsatthelocalleveltoinvolveall stakeholdersinthefightagainsthomelessness.Over40%oftheunhoused populationintheUnitedStatesisBlack,andthisracialdisparityhasnot improvedoverthelastdecade.Thisactionwouldsuspendfundingfor strategicworktoaddresshomelessnessacrosstheUnitedStates,which willhaveadisproportionateimpactonBlackcommunities.
TheCongressionalBlackCaucus(CBC)hasdemonstratedacommitmentto economicempowermentinBlackcommunitiesfordecades.
In2024,theCBCissuedthisstatementinresponsetoafederaljudge’s rulingthatracecannotbefactoredintotheMBDAgrantprocess:
“TheDepartmentofJustice’sdecisiontonotappealtherulingin Nuziardv.MBDAisunfortunate.Thisrulingaddstotheongoingefforts tocutoffaccesstocapitalforBlackandminoritybusinessenterprises. InMarch,afederalcourtacknowledgedthatminoritybusiness enterprises‘havefarlessaccesstocapitalandcredit…duetoracial discriminationinlendingmarkets,’however,itstillruledthatCongress violatedtheConstitutionbyrequiringtheMBDAtopresumethat membersofspecifiedracialorethnicgroupswereeligibleforMBDA BusinessCenterservicesonthebasisofdiscriminationorimpaired abilitytocompeteduetolackofcapitalandcreditopportunities. WhiletheMBDAwillbeabletocontinueitsimportantwork,theCBC disagreeswiththisdecisionwhole-heartedlyandwillcontinueour worktoremovebarriersandprovideaccesstocapitaland opportunitiestoensurethatBlackbusinessownersareableto competeinthe21stcenturyeconomy.”
InMarchof2025,seventeenCBCMemberssignedontoaletterurging ScottTurner,theTrumpAdministration’sSecretaryofHousingandUrban Development,toresumedistributionofcongressionallyappropriated fundsforgrantrecipientsworkingtofighthomelessness:
“Largeandsmallhomelessserviceprovidersalike–acrossrural, suburban,andurbancommunities–arelargelyfundedbythe ContinuumofCareprogram,andthislackoffinancialcertaintyis activelycausingthemtoreevaluatetheirabilitytoprovideservicesto theircommunities.This,inturn,hasthepotentialtoincrease homelessnessacrossthecountry.WeurgeHUDtofinishprocessing FY2024homelessnessfundingandcomplywiththetwo-yearfunding cycleauthorizedbyCongress.”FullStatement
