The Weekly Wrap: CDFI Fund Proposes Eliminating Racial and Ethnic Minority Certification Criteria

Welcome back to The Weekly Wrap, our Friday roundup of stories that explain the problems oppressing people in cities and elevate the solutions that bring us closer to economic, environmental, and social justice. If you enjoy this newsletter, share it with a friend or colleague and tell them to subscribe. CDFI Fund Proposal Would Remove Race and Ethnicity as Qualifying Criteria The Treasury Department has proposed new policies for community development financial institutions (CDFIs) that would eliminate CDFI certification based on serving certain racial and ethnic minorities, The American Banker reports. The Federal Register specifically proposes that African American, Hispanic, Pacific Islander, Filipino, and Vietnamese populations would no longer be eligible target market types, as well as “Other Targeted Population” types. CDFIs that are already certified and rely on these markets would have a one-year transition period to requalify. The move is part of the Trump administration’s ongoing effort to stamp out the CDFI Fund’s so-called “woke” ideologies. While “not unexpected given the administration’s executive orders,” the proposal “nonetheless represents a significant change in CDFI certification that harms populations lacking adequate access to loans and equity investments,” the Community Development Bankers Association has responded in a statement. The Treasury is accepting public comment on the proposal through Nov. 30. ‘Stop the Settlements Act’ Introduced in House Rep. Joaquin Castro introduced legislation in the House of Representatives on Thursday meant to impose sanctions on entities helping to build Israeli settlements in the West Bank or Gaza. Sanctions are mandatory under the law, but the legislation includes a carveout that allows the president to avoid any sanctions for “national security” purposes. It also gives wide leeway to the president to determine who receives sanctions, allowing the office to determine who is “responsible for or complicit in or to have directly or indirectly engaged or attempted to engage in” the construction of settlements. In theory, this could include American real estate agencies that have promoted illegal land sales as well as nonprofits and developers. But it is unlikely that the President would sanction, for instance, his son-in-law Jared Kushner, who has promoted plans for settlement construction in Gaza. ‘Ratepayer Protection’ Bill Shut Down in Senate The U.S. Senate voted down a bill introduced by Republican Sen. Jon Husted that would have required utility regulators to “consider” requiring tech companies operating data centers to pay for the construction of new energy plants rather than offloading costs to other ratepayers. Only four Democrats voted in favor of the legislation, with Senate majority leader Chuck Schumer calling it an “ineffectual participation trophy” because it does not make ratepayer protection mandatory. The American Prospect notes that many states, including conservative ones, have implemented stronger ratepayer protections than would be provided by the failed bill, including tariffs on data centers. Trump Administration Slashes Fuel Efficiency Standards for Gas Vehicles The Department of Transportation has slashed rules for vehicles meant to curb greenhouse gas emissions, The Guardian reports. Gas vehicles account for 28% of the U.S. greenhouse emissions. The Trump administration claimed that the move would reduce the cost of new cars by $1,300. But some advocates for cleaner energy said the new rules would cost consumers more at the gas tank, as car companies are no longer bound by mileage per gallon requirements in vehicles they manufacture. “Consumers will pay the price for these reckless rollbacks while Trump’s Big Oil and Big Auto buddies reap the short-term profits,” Dan Becker, who works for the Center for Biological Diversity’s safe climate transport campaign, told The Guardian. Report: U.S and Israel Attack Civilian Infrastructure in Iran A report from the National Iranian American Council documented widespread attacks on civilian infrastructure during the U.S. and Israel’s illegal war on Iran. According to the report, attacks from the U.S. and Israel have damaged 12 bridges, more than 210 health centers, 27 airports, and 1,288 schools. Citing United Nations data, the report said that 24 to 26 healthcare workers had been killed, including in a direct strike on an ambulance. More than 3,400 civilians in Iran were reported killed as of June, according to the UN. MORE NEWS - MTA says Trump tariffs will add $1B to cost of new trains and buses in NYC. The City Reporter - California just passed the strongest AI labor laws in the U.S. Blood In The Machine - How Meta uses AI data centers to avoid billions in federal taxes. The New York Times - Activists are pushing cities and companies to cancel parking contracts with ICE . The Appeal - These 100 nursing homes face perilous flood risk. Minnesota shows what can happen. KFF Health News - Mamdani must redo his pied-à-terre tax rollout, NY judge orders. Gothamist - NYC delivery workers report staggering rates of injury, mental health issues. The City Reporter - EPA unlawfully canceled $7B Solar for All program, judge rules. Smart Cities Dive OPPORTUNITIES & RESOURCES - Visa Foundation is providing grants to nonprofit Entrepreneurial Support Organizations that provide direct services to small and micro businesses. Apply by Oct. 21. - Microsoft Community-First Grants are accepting applications for funding support for nonprofits serving King County, Washington, advancing civic life; education and workforce development, housing, human services, and basic needs; and sustainability and transportation. Apply by Oct. 23. - The America250 Community Futures Challenge is accepting applications from 501(c)(3) nonprofits advancing workforce development, economic mobility, public infrastructure, civic tech, entrepreneurship, community development, and more. Apply by Nov. 30. This article is part of The Weekly Wrap, a newsletter rounding up stories that explain the problems oppressing people in cities and elevate the solutions bringing us closer to economic, environmental and social justice. Click here to subscribe to The Weekly Wrap newsletter. Roshan Abraham is a contributing editor for housing and homelessness at Next City. Based in Queens, New York, he has written extensively about city policy, including prisons and policing, housing and homelessness for The Guardian, The New York Times, Slate, The Baffler, Village Voice, The Verge, Pacific Standard, The Appeal, Vice and other outlets. At Vice, he was formerly a staff writer covering the housing beat. He is a former Open City Fellow and Witness Fellow at the Asian American Writers Workshop and a former Equitable Cities Fellow at Next City. Add to the Discussion Next City sustaining members can comment on our stories. Keep the discussion going! Join our community of engaged members by donating today. Already a sustaining member? Login here.