Bipartisan Group of Senators Urges Swift Action to Disburse CDFI Fund

Strategic Insights -

A bipartisan group of senators sent a letter to the Office of Management and Budget (OMB) Director Russell Vought urging swift action to disburse the $324 million in congressionally-appropriated funding from the CDFI Fund. This funding was allocated in the Fiscal Year 2025 appropriations package, but significant delays remain in obligating those funds, creating uncertainty for the 1,400 certified CDFIs dependent on the fund. North Dakota, in particular, has benefited from CDFI funding, with $120,530,892 in New Market Tax Credits and $21,399,073 in CDFI Loans used to finance affordable housing, healthcare, manufacturing, small business, and tribal communities.

Key Takeaways:

  • The CDFI Fund has received $324 million in congressionally-appropriated funding, but significant delays remain in obligating those funds.
  • The 1,400 certified CDFIs dependent on the fund face uncertainty due to the delays.
  • North Dakota has received $120,530,892 in New Market Tax Credits and $21,399,073 in CDFI Loans to finance various community development projects.
  • The CDFI sector has successfully leveraged federal dollars from the CDFI Fund to boost small business formation, increase housing production, and deliver new capital to underserved communities.
  • The bipartisan group of senators, including U.S. Senator Kevin Cramer (R-ND), urges the OMB Director to take swift action to disburse the funds.
  • The CDFI Fund has yet to announce and disburse awards for five programs within its portfolio, despite application periods closing months ago.
  • The senators emphasize the importance of deploying congressionally-approved funds strategically and in a timely manner to support critical projects and flow of capital to businesses and consumers who need it most.
  • Benefits of CDFI funding include promoting economic growth and financial inclusion in underserved communities, leveraging federal investment to provide loans, capital, and financial services, and supporting projects in areas often overlooked by traditional financial institutions.
  • The CDFI sector has a track record of success, with over three decades of promoting access to capital in rural and urban communities.

Statistics:

  • $324 million: The amount of congressionally-appropriated funding allocated to the CDFI Fund.
  • 1,400: The number of certified CDFIs dependent on the fund.
  • $120,530,892: The amount of New Market Tax Credits received by North Dakota.
  • $21,399,073: The amount of CDFI Loans received by North Dakota.
  • 5: The number of programs within the CDFI Fund portfolio that have yet to announce and disburse awards.

Sources:

  • North Dakota Senator Kevin Cramer: "Community Development Financial Institutions (CDFIs) promote economic growth and financial inclusion in underserved communities in North Dakota and across the country."
  • Bipartisan letter to OMB Director Russell Vought: "It's imperative that congressionally-approved funds for the CDFI Fund are deployed strategically and in a timely manner."
  • Congress: Fiscal Year 2025 appropriations package that allocated $324 million to the CDFI Fund.
  • CDFI Fund: Programs that have yet to announce and disburse awards, despite application periods closing months ago.
  • North Dakota Department of Commerce: Funding received by North Dakota for various community development projects.