Community Development Bankers Association

U.S. Sens. Mark R. Warner (D-VA) and Mike Crapo (R-ID), co-chairs of the Senate Community Development Finance Caucus, yesterday led a bipartisan group of 26 senators (13 Democrats, 13 Republicans) 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 Fund (CDFI Fund). Signers included CDFI Caucus leadership and Senate Banking Committee Chair Tim Scott (R-SC).

The letter demonstrates the wide bipartisan support for CDFIs generally, and the role of the CDFI Fund in particular. It 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. As it stands, OMB has not approved the FY 2025 BEA notice of funding with just two months left in the fiscal year, and OMB’s 2026 budget projected that no 2025 BEA monies would be obligated. Failure to obligate monies places those funds at risk of expiration.

"We look forward to Director Vought's positive reception and prompt action regarding the Senate CDFI Caucus's letter."

-Jeannine Jacokes, CDBA CEO

Read the full letter and list of signees here:https://www.cdbanks.org/sites/default/files/pdfs/7.29.2025%20Letter%20to%20OMB%20CDFI%20Fund%2013.13.pdf

Trump Admin Lets Bank CDFI Program Wither on the Vine

"These resources help small banks retain branches in remote rural areas, offer small dollar loans that keep people from going to payday lenders, and make homeownership a reality to a family that otherwise would remain renters," said Jeannine Jacokes, CEO of the Community Development Bankers Association.

Read the full article: https://www.americanbanker.com/news/trump-admin-lets-bank-cdfi-program-wither-on-the-vine

Trump admin lets bank CDFI program wither on the vine Calls for applications for a bank-specific program within the Community Development Financial Institution Fund have been delayed, raising the possibility that those funds are unspent before the appropriated money expires.

On June 2nd, Southern Bancorp announced that they had entered into an agreement to acquire Legacy Bank and Trust. Both banks are proud CDFIs and CDBA members who have done impactful work in their communities. Listen to Southern Bancorp CEO and Former CDBA Chairman Darrin Williams talk about the merger and their joint future on Talk Business & Politics with Roby Brock: https://lnkd.in/eVsBh_Gr

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Thank you to by José Andrés for hosting this year's Peer Forum Dinner!