Bipartisan Bill Introduced to Enhance Transparency in Community Development Financial Institutions (CDFI) Fund Operations

Strategic Insights -

A bipartisan group of U.S. Senators has introduced the "CDFI Fund Transparency Act," a bill aimed at ensuring operations surrounding the CDFI fund are more transparent. The bill, proposed by Senators Steve Daines (R-Mont.), Mark Warner (D-Va.), Mike Crapo (R-Idaho), and Raphael Warnock (D-Ga.), would require the Secretary of the Treasury to testify annually before the Senate Banking and House Financial Services Committees regarding the operations of the CDFI Fund during the previous fiscal year. This move is expected to boost accountability and transparency, allowing the Fund to better serve communities.

Key Takeaways:

  • The "CDFI Fund Transparency Act" would require the Secretary of the Treasury to testify annually before the Senate Banking and House Financial Services Committees regarding the operations of the CDFI Fund during the previous fiscal year.
  • The bill aims to enhance transparency in the CDFI fund operations, ensuring the Fund remains focused on its mission to strengthen vulnerable Americans and low-income communities.
  • Senators Daines, Warner, Crapo, and Warnock introduced the bipartisan bill to strengthen the CDFI programs and ensure the Fund continues its impact on millions of Americans in need.
  • The CDFI Fund plays a critical role in bringing capital and financial services to small businesses, homeowners, and housing developers.
  • Senator Daines, a member of the bipartisan Senate CDFI Caucus, has strongly supported efforts to strengthen CDFI programs and has advocated for the disbursement of $324 million in congressionally-appropriated funding from the CDFI Fund in August 2025.
  • The bill aims to enhance public trust in CDFIs and ensure they are available to fuel economic growth for years to come.

Statistics:

  • The CDFI Fund has been in operation for over 30 years, fostering economic growth in low-income and rural communities across Virginia.
  • The bill would require the Secretary of the Treasury to testify annually regarding the operations of the CDFI Fund during the previous fiscal year.
  • The CDFI Fund has provided critical funding for small businesses, homeowners, and housing developers, positively impacting millions of Americans in need.
  • The proposed amendment to the NDAA would expand codified language impacting CDFIs and extend the CDFI Bond Guarantee Program for four years, lowering the bond amount from $100 million to $25 million.

Sources:

  • The press release from Montana Senator Steve Daines
  • Statement of Support from Jim Nussle, President/CEO of America's Credit Unions