Trump Just Killed the American Dream for Millions—And That’s the Point
MBDA & CDFI helped level the playing field. Trump just erased them so only the powerful get ahead.
For decades, the American Dream has been sold as a promise: Work hard, take risks, and build something of your own. But Donald Trump just made it clear—that dream is no longer for you.
On March 14, 2025, Trump signed an executive order eliminating the Minority Business Development Agency (MBDA) and Community Development Financial Institutions (CDFI) Fund, two federal programs designed to give minority and women entrepreneurs a fair shot at success.
This wasn’t about saving money; MBDA’s budget was a tiny $70 million, and CDFI’s investments helped generate billions in economic activity. This was about ensuring fewer people—especially people of color and women—can build wealth.
This is how you kill the American Dream—not by banning ambition but by cutting off access to the tools people need to succeed.
This is part of the Executive Order signed near midnight on Friday, which cuts other key agencies.
See our reporting here:
Eliminate Access to Capital So Only the Rich Can Start Businesses
Minority and women entrepreneurs already face significant hurdles when trying to secure loans:
Higher loan rejection rates – White-owned businesses get approved for 82% of loans, Hispanic-owned companies get 77%, and Asian-owned firms get 74%.
More expensive loans – Minority businesses pay higher interest rates and face stricter collateral demands, costing them an extra $8 billion a year.
Less generational wealth to invest – The median wealth for a Black family is $5,446, while for a white family, it’s 16 times higher.
That’s why MBDA & CDFI existed, to fix these disparities and level the playing field.
MBDA helped minority business owners secure loans, government contracts, and growth opportunities.
CDFI invested in community-based lenders, providing $12 billion in capital to low-income areas in the last five years alone.
Now, both are gone.
Without these programs, big banks decide who gets to build wealth, and history shows they don’t give loans to minority businesses at the same rate.
Disguise This as an Attack on "DEI" While Quietly Rigging the Economy
Trump and his allies aren’t selling this as an economic war on working-class entrepreneurs. Instead, they’re hiding behind anti-DEI rhetoric, claiming these programs were “unfair advantages.”
But let’s be clear: MBDA and CDFI didn’t give anyone an unfair leg up. They existed because the system is already rigged against minority and women entrepreneurs.
The rich don’t need small business loans. They inherit wealth, have connections, and have collateral.
Women and minority entrepreneurs don’t. That’s why they need access to alternative funding sources.
Killing these programs isn’t about fairness. It’s about keeping economic mobility out of reach.
See our article here on how Trump’s policy benefit corporations, not you:
Make Sure More People Stay Trapped in Wage Slavery
Trump’s cuts are part of a larger plan to create a permanent underclass—a workforce with no choice but to work for the rich because the tools to develop independent wealth are disappearing.
First, he killed worker protections. Mass layoffs, union-busting, and Schedule F made it easier to fire people and harder for them to fight back.
Then, he cut federal housing & homelessness programs. If you lose your job, there are fewer resources to keep you housed.
Now, he’s cutting business funding. If you want to escape low wages and build your own business, too bad—you’re on your own.
The strategy is clear: There are no stable jobs, safety nets, or access to capital. The rich stay rich, and everyone else stays desperate.
Who Benefits? Who Loses?
Losers:
Black, Latino, Indigenous, and women entrepreneurs. Without access to capital, fewer minority-owned businesses will be created and sustained.
Underserved communities. Many small businesses rely on CDFI funding to grow, create jobs, and maintain economic stability.
The next generation of entrepreneurs. Without funding, wealth creation stalls, and fewer businesses get passed down to future generations.
Winners:
Big banks. With CDFI gone, corporate lenders will have even more control over who gets financing and who doesn’t.
Large corporations. With fewer small businesses surviving, big companies face less competition and gain more low-wage workers.
Trump’s billionaire donors. This move directly benefits the financial elite, ensuring fewer working-class people enter their ranks.
The Bigger Picture: This Was Never About Saving Money
MBDA and CDFI had tiny budgets compared to corporate tax cuts and defense spending. This wasn’t about reducing the deficit; it was about consolidating power.
The goal is simple: If fewer people can start businesses, more people are forced to work for the rich.
This is the final phase of Trump’s class war. First, he made it harder for workers to organize. Then, he slashed housing aid. Now, he’s making sure only the wealthy can build businesses.
This is how you turn a democracy into a corporate oligarchy.
What Happens Next? Will Congress Stop This?
Congress has the power to override Trump’s order. MBDA and CDFI were created by Congress, meaning lawmakers can stop this—but only if they act.
This isn’t just another budget cut; it’s an attack on economic freedom. If people don’t fight back, the American Dream dies here.
Call your representatives. Demand action.
Spread the word.
If small business ownership becomes a luxury for the elite, what future is left for the rest of us?
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Bibliography:
"Trump's Next Agency Cuts Include US-Backed Global Media, Library and Museum Grants" Politico, March 15, 2025.
"Trump Calls For Eliminating More Federal Agencies"FedSmith.com, March 15, 2025.
"SBA Data Show Major Increase in Loans to Black-Owned Businesses Under Biden-Harris" U.S. Small Business Administration, September 21, 2023.
"University of Washington Research Uncovers Lending Inequities" Foster School of Business Magazine, January 2025.
"SBA Loan Statistics: Race and Gender" Yahoo Finance, June 2023.
"Small Business Administration-Backed Financing Rose 7% to $56B in Fiscal 2024" Associated Press News, November 2024.
"Companies Are Scrapping or Rolling Back DEI Grants" The Wall Street Journal, October 2024.
"Trump Executive Orders Target DEI in Government and Private Sector" Pillsbury Law, February 2025.
"Trump Wipes Out 7 Agencies at Once" Daily Kos, March 15, 2025.
"Fact Sheet: President Donald J. Trump Continues the Reduction of the Federal Bureaucracy" The White House, March 14, 2025.