WASHINGTON, D.C. - Community Development Financial Institutions (CDFIs) promote economic growth and financial inclusion in underserved communities in North Dakota and across the country. They leverage federal investment to provide loans, capital, and financial services in areas often overlooked by traditional financial institutions. A bipartisan group of senators sent a letter to Office of Management and Budget (OMB) Director Russell Vought urging swift action to disburse the $324 million in congressionally-appropriated funding from the CDFI Fund.
Congress allocated $324 million to support CDFI Fund programs in the Fiscal Year 2025 appropriations package, however significant delays remain in obligating those funds. This has created uncertainty for the 1,400 certified CDFIs dependent on the fund. North Dakota has received $120,530,892 in New Market Tax Credits, and $21,399,073 in CDFI Loans. These funds have been used to finance affordable housing, healthcare, manufacturing, small business, and tribal communities across the state. U.S. Senator Kevin Cramer (R-ND) joined U.S. Senators Mike Crapo (R-ID), Mark Warner (D-VA), and a bipartisan group of colleagues in sending the letter.
“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,” the senators wrote. “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,” the senators continued. “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 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.”
The letter was also signed by U.S. Senators Cory Booker (D-NJ), John Boozman (R-AR), Bill Cassidy (R-LA), Steve Daines (R-MT), Dick Durbin (D-IL), Ruben Gallego (D-AZ), John Hickenlooper (D-CO), Cindy Hyde-Smith (R-MS), Jim Justice (R-WV), John Kennedy (R-LA), Amy Klobuchar (D-MN), Gray Peters (D-MI), Jack Reed (D-RI), Mike Rounds (R-SD), Chuck Schumer (D-NY), Tim Scott (R-SC), Tim Sheehy (R-MT), Tina Smith (D-MN), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), Roger Wicker (R-MS), Ron Wyden (D-OR), and Todd Young (R-IN).
Click here for the letter.