WASHINGTON--A bipartisan group of senators, led by Senate CDFI Caucus co-chairs Mike Crapo (R-ID) and Mark Warner (D-VA) wrote Office of Management and Budget Director Russ Vought Tuesday to request information on the deployment of FY25 funds for the Community Development Financial Institution (CDFI) Fund.
Congress appropriated $324 million for the CDFI Fund in FY25 through the enacted Full-Year Continuing Appropriations and Extensions Act of 2025, however no awards have been made from the Fund yet this year, America's Credit Unions noted.
The letter follows one sent last month by America’s Credit Unions and other organizations both to Bessent and Senate leaders with concerns over delayed deployment of the funds. The Defense Credit Union Council has also shared its concerns with Congress over the matter.
The senators note the CDFI Fund has yet to announce and disburse awards for five programs within its portfolio to date, despite the application periods closing months ago. Other programs have yet to publish applications for the current fiscal year.
“It’s imperative that congressionally approved funds for the CDFI Fund are deployed strategically and in a timely manner,” the group wrote. “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 the most…we request that your Office issue a spending plan to Congress outlining the timelines for the obligation of all discretionary funds. The plan should provide Congress and the CDFI community with certainty that there will be continuity in the programs that have been lawfully funded.”
Additional Senators on the bipartisan letter include Senate Minority Leader Chuck Schumer (D-NY) and Senate Banking Committee Chairman Tim Scott (R-SC), among others.
The Defense Credit Union Council commended the bipartisan group of senators for calling out the urgent need to deploy the full $324 million allocated for CDFI Fund programs in FY 25.
“Credit unions—especially those serving military members, veterans, and underserved communities—depend critically on timely funding to deliver emergency lending, housing and small‑business support, and financial education," said Jason Stverak, chief advocacy officer at the Defense Credit Union Council. "Every day of delay hinders projects, stalls investments, and pushes families back toward high‑cost lenders. We join the Senate in urging OMB to provide a spending plan and timeline so that these congressionally approved funds reach the communities that need them most."