Sponsors (38)
Introduced February 26, 2026 by Steve Daines · Last progress February 26, 2026
The bill expands and clarifies federal liquidity tools and transparency for CDFIs and creates targeted support for Native communities—boosting capacity and homeownership—but it shifts resources toward larger intermediaries, raises compliance and fiscal risks, and may exclude or disadvantage smaller or noncertified community lenders.
CDFIs and other community lenders gain significantly expanded and more flexible access to liquidity (bond guarantees, loan purchases, credit enhancements) and removal of the $5M/3-year cap so organizations can scale lending.
Taxpayers, Congress, and stakeholders get greater transparency and formal oversight through annual public reports and required briefings/hearings, and a Treasury report on program effectiveness within three years.
Native Tribes and Native CDFIs receive dedicated capital and capacity support: a $50M annual set‑aside for mortgage lending, 20% operational support grants tied to loans, and targeted technical assistance funding.
Smaller CDFIs and small local projects risk being excluded or disadvantaged because guarantees under $25M are disallowed and support may concentrate with larger intermediaries after the per-organization cap is removed.
Expanding purchases, guarantees, and using recovered proceeds for new assistance creates fiscal exposure: large losses on purchased loans or guarantees could require taxpayer support or reduce funds for other programs.
An annual $1B cap on bond guarantees could limit total support in high-demand years, leaving eligible projects unfunded.
Based on analysis of 10 sections of legislative text.
Broadens CDFI Fund and Treasury authority to buy loans and provide guarantees, sets bond‑guarantee size limits ($25M min, $1B annual cap), requires oversight/reporting, and creates a Native CDFI set‑aside for rural homeownership.
Expands the Community Development Financial Institutions (CDFI) Fund and Treasury tools to boost liquidity and credit support for community lenders, changes rules and limits for the CDFI Bond Guarantee Program, requires new reporting and annual congressional testimony by Treasury, and creates a set‑aside for Native CDFIs to increase homeownership in Tribal, Alaska Native, and Native Hawaiian rural areas. The bill removes a small per‑organization cap on certain liquidity supports, allows purchases of loans and loan participations, sets a minimum bond guarantee size and an annual program cap, and directs proceeds from loan purchases into an emergency investment fund to support further assistance.