Sponsors (42)
The bill expands capital access and transparency for CDFIs—including a dedicated Tribal mortgage set‑aside—potentially unlocking larger community development projects, but it increases administrative burdens, concentrates support toward larger intermediaries, creates fiscal exposure and program limits that may leave smaller CDFIs and some borrowers worse off.
Taxpayers, Congress, and stakeholders will get regular, public Treasury reporting and annual committee oversight of CDFI programs, increasing transparency and accountability about program operations and outcomes.
CDFIs and community lenders will gain expanded access to liquidity (loan purchases, guarantees, credit enhancements) and clearer program rules—removal of prior caps and predictable access to up to $1 billion in annual bond guarantees—helping them scale lending to small businesses and communities.
Native Tribes, Native CDFIs, and tribal households will get dedicated capital and supports: a $50M annual mortgage set‑aside, borrower prioritization on Tribal lands, operational support grants (20% of loan amounts), and targeted technical assistance funding to expand homeownership opportunities.
Smaller CDFIs, small projects, and local borrowers risk being excluded because the $25M minimum transaction size and removal of per-organization caps tend to concentrate support with larger intermediaries.
An annual $1 billion cap on bond guarantees could leave eligible projects unfunded in high-demand years, limiting the program's ability to meet community financing needs.
Expanded authorities for loan purchases/guarantees and recycling proceeds create fiscal exposure: large losses or defaults could require additional taxpayer support or reduce funds available for other programs.
Based on analysis of 10 sections of legislative text.
Expands CDFI Fund liquidity authorities and loan purchase powers, sets Bond Guarantee per‑transaction and annual caps, adds Treasury oversight, and creates a Native CDFI mortgage set‑aside for rural Native communities.
Official title: Amend the Community Development Banking and Financial Institutions Act of 1994 to require the Secretary of the Treasury to testify before Congress, and for other purposes.
Introduced February 26, 2026 by Steve Daines · Last progress February 26, 2026
Makes several changes to strengthen and expand the Community Development Financial Institutions (CDFI) Fund programs: requires annual Treasury testimony on CDFI Fund operations; narrows and caps certain terms in the CDFI Bond Guarantee Program; expands the Fund’s authority to purchase loans, loan participations and interests and to provide guarantees and other liquidity supports; and creates a dedicated set‑aside and definitions for Native community development financial institutions to increase mortgage lending and homeownership in Tribal, Alaska Native, and Native Hawaiian communities. The bill also requires multiple reports to Congress on program activity and effectiveness and directs recovered proceeds into an Emergency Capital Investment Fund to support ongoing CDFI assistance.