Federal law lets the government guarantee bonds issued by Community Development Financial Institutions (CDFIs) — nonprofits and lenders that bring affordable loans to low-income and rural communities that banks typically avoid. This bill reauthorizes that guarantee program for four more years and raises the annual cap on guaranteed bonds to $1 billion per fiscal year. Each individual guarantee must be at least $25 million. CDFIs use these low-cost, government-backed bonds to fund affordable housing, small-business loans, and community facilities in underserved areas. The Treasury Department must report to Congress on how well the program is working within one and three years of enactment.
Transparency & Accountability
- Treasury reporting requirement — program effectiveness reports due at 1 and 3 years
Congressional Summary
CDFI Bond Guarantee Program Improvement Act of 2025This bill reauthorizes the Community Development Financial Institutions (CDFI) Bond Guarantee Program for four years and revises it to allow for a greater number of participants. CDFIs are financial institutions serving low-income communities. Designation as a CDFI allows an institution to participate in programs such as the CDFI Bond Guarantee Program. The program provides CDFIs with financing for community and economic development projects through federal credit subsidies that allow CDFIs to issue bonds.The bill (1) reduces the program’s minimum loan amount from $100 million to $25 million, (2) eliminates the cap on the annual number of guarantees, and (3) revises the maximum amount that may be held in a CDFI's relending account for secondary loans.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-05-22
- Date Added
- 2026-05-28
- Source
- Congress.gov →
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