Sponsors (35)
This bill expands liquidity, scale, tribal-targeted support, and transparency for CDFIs and community lenders — strengthening community development finance — but increases administrative burdens, concentrates support toward larger intermediaries, creates participation and fiscal trade‑offs for smaller and non‑Native borrowers, and raises risks of unpredictability and taxpayer exposure.
CDFIs, community lenders, and the communities they serve gain substantially expanded, predictable liquidity and capacity to lend through clearer rules, loan purchases, guarantees, removal of the $5M/3-year cap, and an annual bond guarantee program (up to $1B).
Taxpayers, Congress, and stakeholders get greater transparency and regular oversight via annual public reporting and recurring congressional briefings on CDFI Fund operations, program performance, and program effectiveness.
Native CDFIs and tribal households receive dedicated, targeted support: a $50M annual mortgage set‑aside, operational support (20% of loan amounts), and multi-year technical assistance funding to increase homeownership and lending capacity on Tribal lands.
Smaller CDFIs, small projects, and local borrowers are at risk of being excluded or disadvantaged because higher minimum transaction sizes, removal of small per‑organization caps, and incentives for larger intermediaries can concentrate federal support with bigger lenders.
Treasury, CDFI Fund staff, and participating organizations (including Native CDFIs) will face recurring administrative, compliance, and reporting burdens for annual reports, program setup, and monitoring, which could divert time and resources away from lending and program delivery.
Native CDFIs may be limited in participation because of a required 20% non‑Federal cost share and certification/51% ownership thresholds, which could exclude smaller or mission‑aligned lenders and constrain uptake.
Based on analysis of 10 sections of legislative text.
Expands and restructures Treasury/CDFI authorities: modifies bond-guarantee rules and caps, allows loan purchases and credit enhancements, creates a Native CDFI set‑aside, and requires new oversight reports.
Introduced February 26, 2026 by Steve Daines · Last progress February 26, 2026
Expands and changes how the Treasury Department and the Community Development Financial Institutions (CDFI) Fund support community lenders and lending. It requires annual congressional testimony about the Fund, changes the CDFI Bond Guarantee Program by setting minimum and maximum guarantee sizes, broadens the Funds authority to buy loans and provide credit supports (and removes a small per-organization cap), requires new reporting, and creates a targeted set-aside to increase mortgage lending by Native community development financial institutions (Native CDFIs). These changes shift program rules, increase Treasury oversight and reporting, and create new tools for providing liquidity to CDFIs and Native lenders.