WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), co-chair of the Senate Community Development Finance Caucus, issued the following statement:
“I am pleased that the Treasury Department is finally releasing the remaining FY25 funds for the Community Development Financial Institutions Fund, following sustained bipartisan pressure to get these resources out the door. These dollars are critical for small businesses, affordable housing, and economic opportunity in communities that are too often left behind. Getting them released is a win for the bipartisan coalition that has long supported the CDFI Fund and its proven track record.
“That said, it is unacceptable that it took months to move these funds, and alarming that the Fund itself has faced repeated attempts to weaken its capacity, despite rising demand from the people and small businesses that depend on these programs. This is particularly concerning given that other resources at Treasury are still sitting on the sidelines, even as communities across the country are ready to put that funding to work. Moving forward, Treasury must ensure these funds are deployed quickly and transparently, and stop creating avoidable barriers for an institution that has long enjoyed bipartisan support and delivers real economic results.”
Created by Congress in 1994, the CDFI Fund is charged with expanding economic opportunity for underserved communities by supporting Community Development Financial Institutions – mission-driven lenders that provide affordable financing for small businesses, housing, and critical community facilities.
Over 1,400 CDFIs represent a significant portion of America’s financial services sector, delivering over $300 billion in financial services each year to urban and rural communities across every state. Each year, CDFIs provide affordable growth capital to over 100,000 small businesses and finance over $100 billion in residential real estate, bringing down the cost of housing through new construction and affordable home mortgages.
However, in recent years, the CDFI Fund has faced repeated efforts by the Trump administration to reduce its funding and scale back its capacity, including proposed budget cuts, staffing reductions, and an executive order that sought to eliminate the Fund. Despite those attempts, Congress has consistently reaffirmed the importance of the Fund, recognizing its role as one of the most effective tools for expanding access to capital in underserved communities.
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