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Financial services

Bipartisan Senators Urge Swift Action on CDFI Funding

Strategic Insights

— 2 min read

A bipartisan group of senators is urging swift action from the Office of Management and Budget (OMB) Director Russell Vought to disburse $324 million in congressionally-appropriated funding from the Community Development Financial Institutions (CDFI) Fund. The senators expressed concern over significant delays in obligating those funds, which has created uncertainty for the 1,400 certified CDFIs dependent on the fund. In the letter, the senators highlighted the importance of the CDFI Fund in promoting economic growth and financial inclusion in underserved communities, citing its proven track record of leveraging federal investment to provide loans, capital, and financial services in areas often overlooked by traditional financial institutions.

Key Takeaways:

  • The senators are urging OMB Director Russell Vought to take swift action to disburse $324 million in congressionally-appropriated funding from the CDFI Fund.
  • The funding is intended to support CDFI Fund programs, which have been allocated $324 million in the Fiscal Year 2025 appropriations package.
  • A significant delay in obligating those funds has created uncertainty for the 1,400 certified CDFIs dependent on the fund.
  • The CDFI Fund has been instrumental in leveraging federal dollars from the CDFI Fund with private-sector investment to boost small business formation, increase housing production, and deliver new capital to America's forgotten communities.
  • To date, the CDFI Fund has yet to announce and disburse awards for five programs within its portfolio even though application periods closed months ago.
  • North Dakota has received $120,530,892 in New Market Tax Credits, and $21,399,073 in CDFI Loans, which have been used to finance affordable housing, healthcare, manufacturing, small business, and tribal communities across the state.
  • U.S. Senator Kevin Cramer (R-ND) joined U.S. Senators Mike Crapo (R-ID), Mark Warner (D-VA), and a bipartisan group of colleagues in sending the letter to OMB Director Russell Vought.
  • The letter was also signed by a bipartisan group of 20 senators from both parties.

Statistics:

  • $324 million: The amount allocated to the CDFI Fund in the Fiscal Year 2025 appropriations package.
  • $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.
  • 1,400: The number of certified CDFIs dependent on the CDFI Fund.
  • 5: The number of programs within the CDFI Fund's portfolio that have yet to be announced and disbursed.

Sources:

  • United States Senator Kevin Cramer (R-ND)
  • U.S. Senators Mike Crapo (R-ID), Mark Warner (D-VA), and a bipartisan group of colleagues
  • Office of Management and Budget (OMB) Director Russell Vought
  • Community Development Financial Institutions (CDFI) Fund
  • Fiscal Year 2025 appropriations package
  • North Dakota Department of Commerce
  • CDFI Fund's website and publications
  • Bipartisan letter to OMB Director Russell Vought

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