Crapo, Warner Lead Bipartisan Push Urging Timely Deployment of Federal Funds to Community Lenders
Washington, D.C.--U.S. Senators Mike Crapo (R-Idaho) and Mark R. Warner (D-Virginia), co-chairs of the Senate Community Development Finance Caucus, today led a bipartisan group of Senators in a letter to Office of Management and Budget (OMB) Director Russell Vought, urging swift action to disburse congressionally-appropriated funding from the Community Development Financial Institutions (CDFI) Fund. The letter calls for transparency and timeliness in deploying the $324 million allocated in the Fiscal Year 2025 spending package to support over 1,400 CDFIs across the country.
CDFIs serve as vital engines of economic growth and financial inclusion in some of the nation’s most underserved communities, leveraging federal investment to provide loans, capital and financial services in areas that are often overlooked by traditional financial institutions.
“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,” wrote the Senators. “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.”
The CDFI Fund was established in 1994 to promote access to capital in distressed communities. Each year, it enables CDFIs to leverage private capital alongside federal support to build housing, expand access to credit, and drive job growth in low-income areas. In the FY25 appropriations package, Congress allocated $324 million to support the CDFI Fund’s programs. However, as of this month, 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.
“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,” pressed 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. 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.”
In addition to Senators Crapo and Warner, the letter was also signed by U.S. Sensators Cory Booker (D-New Jersey), John Boozman (R-Arkansas), Bill Cassidy (R-Louisiana), Kevin Cramer (R-North Dakota), Steve Daines (R-Montana), Dick Durbin (D-Illinois), Ruben Gallego (D-Arizona), John Hickenlooper (D-Colorado), Cindy Hyde-Smith (R-Mississippi), Jim Justice (R-West Virginia), John Kennedy (R-Louisiana), Amy Klobuchar (D-Minnesota), Gary Peters (D-Michigan), Jack Reed (D-Rhode Island), Mike Rounds (R-South Dakota), Chuck Schumer (D-New York), Tim Scott (R-South Carolina), Tim Sheehy (R-Montana), Tina Smith (D-Minnesota), Chris Van Hollen (D-Maryland), Reverend Raphael Warnock (D-Georgia), Roger Wicker (R-Mississippi), Ron Wyden (D-Oregon) and Todd Young (R-Indiana).
Today’s letter to vote follows a March letter to Treasury Secretary Scott Bessent, also led by Crap and Warner and signed by 23 Senators, emphasizing the bipartisan support for the CDFI Fund and highlighting the fund’s critical role in providing capital to underserved communities.
A copy of today’s letter is available here and text is 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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