U.S. Senator Cindy Hyde-Smith (R-Miss.) has joined a bipartisan group of 26 Senators in calling on the Office of Management and Budget (OMB) to speed up the release of $324 million in funding for the Community Development Financial Institutions (CDFI) Fund. The funds, approved by Congress for fiscal year 2025, are intended to support more than 1,400 certified CDFIs across the country. Mississippi currently leads the nation in the number of depository CDFIs.
“In Mississippi, CDFIs are essential to helping lift up small businesses and rural communities that often don’t have access to more traditional financial tools,” Hyde-Smith said. “This program is a time-tested and cost-effective use of taxpayer dollars. It generates more in tax revenue and economic activity than it costs the government. The administration should act without delay to ensure that this vital capital reaches the communities and institutions that need it the most.”
The CDFI Fund was established in 1994 with a mission to enable certified lenders to combine federal resources with private-sector investment for low-income and rural areas. These partnerships help finance small businesses, affordable housing projects, and other key community services.
The Senators addressed their concerns about delays directly to OMB Director Russell Vought. In their letter they wrote: “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 the 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. Furthermore, other programs have yet to publish applications for the current fiscal year.”
They continued: “The uncertainty around the deployment of federal funds from the CDFI Fund is concerning but can be addressed expeditiously. Therefore, 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.”
Mississippi Bankers Association and Community Development Bankers Association have expressed support for this effort.
The initiative was led by Senators Mark Warner (D-Va.) and Mike Crapo (R-Idaho), co-chairs of the Senate Community Development Finance Caucus; Hyde-Smith as well as Senator Roger Wicker (R-Miss.) are members.
Other signatories include U.S. Senators Cory Booker (D-N.J.), John Boozman (R-Ark.), Bill Cassidy, M.D. (R-La.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Dick Durbin (D-Ill.), Ruben Gallego (D-Ariz.), John Hickenlooper (D-Colo.), Jim Justice (R-W.Va.), John Kennedy (R-La.), Amy Klobuchar (D-Minn.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Mike Rounds (R-S.D.), Chuck Schumer (D-N.Y.), Tim Scott (R-S.C.), Tim Sheehy (R-Mont.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Raphael Warnock (D-Ga.), Ron Wyden (D-Ore.) and Todd Young (R-Ind.).
Earlier this year, Hyde-Smith signed another letter supporting bipartisan backing for continued funding of CDFIs.
