Peace Garden News

Community Development Financial Institutions (CDFIs) play a role in promoting economic growth and financial inclusion in underserved communities throughout North Dakota and the nation. These institutions use federal investments to offer loans, capital, and financial services in areas that traditional banks often overlook.

A bipartisan group of U.S. senators has called on the Office of Management and Budget (OMB) to release $324 million in funding for CDFI programs that Congress allocated for Fiscal Year 2025. The senators sent a letter to OMB Director Russell Vought urging action to address what they describe as significant delays in distributing these funds.

The delay has created uncertainty for approximately 1,400 certified CDFIs across the country that rely on this funding. In North Dakota, these programs have provided more than $120 million in New Market Tax Credits and over $21 million in CDFI Loans, supporting affordable housing, healthcare, manufacturing, small businesses, and tribal communities.

U.S. Senator Kevin Cramer (R-ND), along with Senators Mike Crapo (R-ID), Mark Warner (D-VA), and other colleagues signed the letter. According to the senators: “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."

The letter continues: “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 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.”

Other signatories include 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).

The full text of their letter is available here.