News
"As California grapples with a rising cost of living, many residents remain locked out of basic financial services. To address this, the state legislature is considering a proposal to establish state-run bank accounts, giving Californians a way to save money without incurring fees or maintaining a minimum balance.
The CalAccount program would establish voluntary, zero-fee, zero-penalty, federally-insured transaction accounts that could help people who currently have limited access to banking options."
"The Office of the Comptroller of the Currency (OCC) announced today that it has conditionally approved the merger of Discover Bank, Greenwood, Delaware, into Capital One, National Association, McLean, Virginia.
The OCC conducted a fulsome review of the application submitted March 21, 2024, to ensure all statutory and regulatory requirements have been met. The approval also follows consideration of numerous public comments submitted in writing and expressed during a public meeting held with the Board of Governors of the Federal Reserve System conducted on July 19, 2024. Today's announcement reflects the OCC's careful analysis of the effect of the merger on communities, the banking industry, and the U.S. financial system."
"Acting Comptroller of the Currency Rodney E. Hood today discussed strategic areas of focus for the Office of the Comptroller of the Currency (OCC) in remarks at the Exchequer Club.
In his remarks, Acting Comptroller Hood detailed the OCC's efforts to reduce regulatory burden; promote financial inclusion; embrace bank-fintech partnerships; and expand responsible bank activities involving digital assets. He also affirmed the OCC's commitment to modernizing the federal banking system and maintaining its safety and integrity."
"A federal judge on Wednesday indefinitely blocked the Environmental Protection Agency (EPA) from clawing back billions of dollars in Biden-era climate grants.
U.S. District Judge Tanya Chutkan said the EPA may not suspend or terminate the green grant awards nor limit access to those funds while a lawsuit challenging the effort to recoup the money moves forward."
"The Office of the Comptroller of the Currency (OCC) today announced changes to its organizational structure to ensure its approach to supervision evolves to better address today's challenges, align similar functions within the agency, and leverage opportunities for efficiencies.
The OCC will combine the Midsize and Community Bank Supervision and Large Bank Supervision functions to create the Bank Supervision and Examination line of business. Blending the large, midsize and community bank supervision activities will allow for the seamless sharing of expertise and resources to address bank-specific issues or novel needs and provides opportunities for career development and progression for the agency's entire examination workforce."
"Reps. Darin LaHood (R-Ill.) and Suzan DelBene (D-Wash.), along with 114 bipartisan cosponsors, have introduced NAHB-supported legislation that will improve the Low-Income Housing Tax Credit (LIHTC) and allow builders to increase production of badly needed affordable rental housing.
The Affordable Housing Credit Improvement Act of 2025 addresses the need to boost housing production to ease the nation's housing affordability crisis. The bill would help finance more than 2 million additional multifamily units over the next decade."
"The US Treasury Department no longer intends to take a backseat in US bank regulation and is moving to the driver's seat instead.
Speaking at the American Bankers Association's Washington Summit on April 9, US Treasury Secretary Scott Bessent laid out a road map for the future of US bank regulation, a task given to him by President Donald Trump. Among those potential changes are tailored regulations for community banks, increased focus on financial risk versus management and governance, modernized capital requirements and reassessed capital buffers for large banks."
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.
"As the Department of Government Efficiency and other members of the administration continue clear-cutting the federal workforce, organizations that rely on the CDFI Fund to develop affordable housing, support minority-owned businesses and deliver disaster recovery in low-income parts of the country expressed concerns about what the order could mean for those efforts. CDFIs have a track record helping communities across the US, including the rural areas Trump has said he wants to help, so it's confusing for leadership of these organizations to be targeted. Considering current efforts to cut HUD staff and programs, including retrofit programs for older homes, the anxiety is well founded."
"In celebration of KeyBank's (NYSE: KEY) Bicentennial, the KeyBank Foundation is proud to announce a special grant program designed to strengthen Community Development Financial Institutions (CDFIs) that play a critical role in advancing affordable housing and small business development. This milestone initiative reflects KeyBank's enduring legacy of service, resilience, and commitment to fostering economic opportunity and strengthening communities.
Through this program, the KeyBank Foundation intends to award one $200,000 grant to an exemplary CDFI in each of KeyBank's 27 markets. These grants will provide flexible funding to help CDFIs in achieving their broader mission – whether through expanding services, enhancing infrastructure, or deepening their community impact—ensuring long-term sustainability and continued support for underserved populations."