News
CDBA Members and Colleagues,
The past month has brought a wave of policy developments—and growing challenges—for the CDFI industry. Amid it all, your advocacy has made a meaningful impact. Thanks to the collective efforts of CDFIs and allies across the country, we’ve secured several key wins:
- Preserved FY25 funding for the CDFI Fund at FY24 levels, despite broader budget pressures.
- Affirmed the CDFI Fund’s full statutory authority, reinforcing the long-term stability of the program.
- Elevated the visibility and value of the CDFI Fund in public and policymaker discussions.
These are significant victories, and they reflect the strength of our collective voice. But as you know, advocacy doesn’t pause. Continued engagement remains essential:
- Stay connected: Let us know how you're using CDFI Fund resources—we want to highlight your work and elevate success stories.
- Stay informed: We’ll keep you updated on any changes from Treasury or OMB.
- Keep advocating: Real-world examples from your communities remain our most powerful tool in protecting and strengthening these programs.
We know we’ve asked a lot of you lately. But your efforts are paying off—and together, we're shaping the future of community development finance.
Thank you for your continued leadership and dedication.
Sincerely,
The CDBA Team
Click Read More to Catch Up on the Most Important CDFI Headlines From the Last Month.
"For the past three decades, a little-known fund housed in the U.S. Department of the Treasury has been quietly fueling economic growth in communities across the country. With an astonishing return on investment, the Community Development Financial Institutions, or CDFI, Fund has unlocked billions in private capital in economically distressed urban, rural and Native communities that are often overlooked by mainstream financial institutions. The CDFI Fund has a 30-year track record of providing resources to local CDFIs — loan funds, credit unions and banks — that finance what is important to Americans with low and moderate incomes: affordable housing; new childcare slots; growth for local businesses; and expanded health care facilities."
"The federal bank regulatory agencies today announced, in light of pending litigation, their intent to issue a proposal to both rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and reinstate the CRA framework that existed prior to the October 2023 final rule. The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA."
"Yesterday, the United States Senate confirmed Michael Faulkender to be the Deputy Secretary of the United States Department of the Treasury.
'It is an honor to be confirmed as the Deputy Secretary of the United States Department of the Treasury. Thank you, President Trump, for the trust and confidence you have placed in me, and I thank Secretary Scott Bessent for his unwavering support,' said Michael Faulkender. 'I look forward to working with Secretary Bessent in delivering prosperity for the American people, the reprivatization of our economy, national security through economic security, and working to support the President's America First agenda."'
"Community Development Financial Institutions (CDFIs) play a crucial role in providing financial services to low-income communities—areas often overlooked by traditional banks. These mission-driven lenders offer affordable loans to small businesses, schools, grocery stores, daycare centers, and homebuyers who would otherwise struggle to access capital, helping to spur economic growth and stability across the country. Shrinking or defunding CDFIs threatens to dismantle this vital system, cutting off financial access for those who need it most. Without CDFI funding, many will face an even steeper uphill battle to build businesses, secure housing, and create jobs, deepening economic disparities in states already facing significant financial challenges. In this article, we explore, as an example, how CDFIs benefit homebuyers across the state of Mississippi."
"The U.S. Department of the Treasury plans to lay off a 'substantial' number of employees as part of the Department of Government Efficiency's effort to shrink the size of the federal government, a department official said in a declaration included in a court filing.
The department is finalizing its plans in response to President Donald Trump's February 11 executive order that directed agency heads to 'undertake preparations to initiate large-scale reductions in force,' according to the declaration from Trevor Norris, the deputy assistant secretary for human resources for the department, first reported by Bloomberg."
"In a series of posts to his account on social media platform X, Federal Housing Finance Agency (FHFA) Director Bill Pulte published housing orders that terminate special purpose credit programs (SPCPs) and rescinds a 2024 advisory bulletin detailing the agency's enforcement against unfair or deceptive acts or practices (UDAP)."
"BankPlus and FHLB Dallas awarded Gulf Coast Housing Partnership a $499,000 Affordable Housing Program (AHP) grant toward the construction of 27 affordable apartments, 60 percent of which are specifically set aside for special-needs residents, including people with disabilities and people who are 55 years old and older. The development is a partnership between GCHP and Midtown Partners Inc., the neighborhood-based non-profit that serves the Midtown community."
"The Federal Reserve Board on Friday announced its approval of the application by Renasant Corporation, of Tupelo, Mississippi, to merge with The First Bancshares, and thereby indirectly acquire The First Bank, both of Hattiesburg, Mississippi."
"As we gear up for the 2025 Federal Reserve CDFI Survey, this post paints a picture of the current state of CDFIs and seeks to understand why the industry may look different than it did in 2023, our last survey year. There are several key takeaways:
- The number of CDFIs certified by the CDFI Fund has grown significantly over the last 15 years but decreased slightly since the last iteration of the CDFI Survey in 2023.
- Loan funds and credit unions make up the majority of certified CDFIs, both nationally and within the Fifth District.
- The types of financial institutions that are CDFI-certified has shifted significantly over time, especially as it relates to credit unions, which have doubled in the Fifth District and more than doubled nationally.
- Past survey results illustrate how differences in the business structures of CDFI credit unions and loan funds influence changes in demand and challenges in meeting demand."