$324 million in federal funding for community development financial institutions (CDFIs) remains in limbo
WASHINGTON – U.S. Senator John Hickenlooper joined a bipartisan group of senators to call on Office of Management and Budget (OMB) Director Russell Vought to swiftly deliver the $324 million in allocated federal funding from the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund supports more than 1,400 CDFIs to increase access to capital in communities nationwide.
“Delay in the obligation of funds hinders critical projects in our states and could constrain the flow of capital to businesses and consumers who need it the most,” wrote the senators. “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.”
Established in 1994, the CDFI Fund helps CDFIs leverage private capital alongside federal support to build housing, expand access to credit, and drive job growth in underserved areas. Last year, Congress allocated $324 million to support the CDFI Fund’s programs. However, significant delays remain in awarding and obligating those funds, creating uncertainty for the more than 1,400 certified CDFIs that rely on the Fund for program continuity and impact. The senators called on the Trump administration to address these delays and deliver the congressionally appropriated funding.
This spring, Hickenlooper sent a bipartisan letter to the Trump administration voicing strong support for the CDFI Fund and its critical role investing in communities that face barriers accessing traditional capital. The letter followed an executive order President Trump signed directing the federal government to effectively eliminate the CDFI Fund.
Hickenlooper sits on the Senate Committee on Small Business & Entrepreneurship, where he has prioritized legislation that increases access to capital in underserved communities including his bipartisan CDFI Bond Guarantee Program Improvement Act, Investing in all of America Act, and Supporting Community Lenders Act.
Full text of the letter available HERE and below.
Dear Director Vought,
We write to request information on the Office of Management and Budget’s efforts to deploy FY25 funding provided to the CDFI Fund. As you know, the Full-Year Continuing Appropriations and Extensions Act of 2025 appropriated $324 million for the CDFI Fund and prescribed those funds to support over 1,400 CDFIs in rural and urban communities. As your Office seeks to implement and execute on this funding legislation, we urge you to swiftly obligate all discretionary funding provided by Congress to the CDFI Fund in a timely manner.
Since its inception over three decades ago, the CDFI Fund has proven critical to the CDFI sector’s success and has met the mission to create a public-private partnership to promote access to capital in our most underserved rural and urban communities. Each year, CDFIs leverage 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.
It’s imperative that congressionally-approved funds for the CDFI Fund are deployed strategically and in a timely manner. Delay in the obligation of funds hinders critical projects in our states and could constrain the flow of capital to businesses and consumers who need it the most. 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. Furthermore, other programs have yet to publish applications for the current fiscal year.
The uncertainty around the deployment of federal funds from the CDFI Fund is concerning but can be addressed expeditiously. Therefore, we request that your Office issue a spending plan to Congress outlining the timelines for the obligation of all discretionary funds. The plan should provide Congress and the CDFI community with certainty that there will be continuity in the programs that have been lawfully funded.
Thank you for your consideration of our request. We stand ready to work with the Administration to support CDFIs and the communities that they serve.
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