In an op-ed published September 14, 2026, by Crain’s Chicago Business, IFF CEO Kirby Burkholder and the leaders of seven other community development financial institutions (CDFIs) in Chicago argue that using $57 million in the Chicago Community Catalyst Fund to close a short-term budget gap will sacrifice a permanent source of capital for catalytic neighborhood investments.
Instead, the co-authors advocate for the funding to be invested in local CDFIs that have a track record of deploying public funding to strengthen communities. With competitive standards for selecting CDFI partners, firm deployment goals, and regular public reporting, the Catalyst Fund can preserve the city’s principal and produce reasonable returns while supporting small businesses, affordable housing, community facilities, and other priorities in neighborhoods that need capital most.
Included below is an excerpt from the op-ed and a link to the full piece on the Crain’s Chicago Business website.
Chicago faces serious structural budget deficits, and city leaders are right to consider every option for protecting essential services. But while dissolving the Chicago Community Catalyst Fund and transferring its cash to the operating budget may provide short-term budget relief, this move would likely cost the city much more in lost tax revenue over the long term. It would exchange a permanent source of neighborhood investment for a one-time budget fix.
Chicago’s future depends on bringing more investment to neighborhoods that have not shared equally in downtown’s growth. That challenge is even more urgent as families struggle to find affordable homes, small businesses face constrained access to capital, and nonprofits confront growing demands for their services.
As leaders of Chicago-based Community Development Financial Institutions (CDFIs), we agree that the Catalyst Fund has not fulfilled its promise. Created a decade ago to combine public and private capital for investment in underserved neighborhoods, more than $57 million now sits largely unused. Invested correctly, these funds will create more neighborhood jobs and safer communities — and contribute to the public coffers by yielding more property and sales taxes. Those are reasons to reform the Catalyst Fund, not eliminate it.
Read the Op-Ed