President Trump’s mass firings of federal workers during the government shutdown could hinder implementation of tax incentives for low-income communities. The cuts target staff of the Community Development Financial Institutions Fund, impacting programs like New Markets Tax Credits and Opportunity Zones. Without staff, investments could be delayed nationwide.

The New Markets Tax Credits and Opportunity Zones programs drive private investments into low-income areas. Republicans approved $5 billion in funding for the tax credits and reauthorized the Opportunity Zone program in Trump’s tax-cut law. Despite boasting about their success, the programs face instability due to the recent firings of staff members.

The firings, separate from furloughs, threaten the stability of programs aimed at boosting investment in struggling communities. Trump’s actions, seen as targeting “Democrat programs,” put pressure on Senate Democrats amid the ongoing shutdown, now tied for the second-longest in U.S. history. Lawmakers express concerns over the impact of staff cuts on job creation initiatives.

Staff from the Opportunity Zones fund help screen areas for investment, while the IRS provides subsidies for New Market Tax Credits. Without proper staffing, certifications and fund allocations could be stalled. Lawmakers and senators worry about the potential hit to job creation efforts in low-income areas. The administration’s proposed cuts follow a pattern of unilateral budgetary decisions.

Read more at Yahoo Finance: Shutdown firings could hinder economic development in Trump’s tax law