HYDE-SMITH JOINS BIPARTISAN PUSH TO EXPEDITE CRITICAL FUNDING FOR COMMUNITY LENDERS
Miss. Senator Urges Timely Deployment of $324 Million to Support Underserved Rural and Urban Communities
WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) this week joined a bipartisan coalition of Senators in urging the Office of Management and Budget (OMB) to expedite the disbursement of $324 million in congressionally-approved funding for the Community Development Financial Institutions (CDFI) Fund.
Twenty-six Senators signed a letter to OMB Director Russell Vought highlighting the need for timely and transparent distribution of FY2025 funds to more than 1,400 certified CDFIs nationwide. Mississippi has the most depository CDFIs in the country.
“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.”
Established in 1994, the CDFI Fund enables certified lenders to leverage federal dollars with private-sector investment to bring much-needed financial resources to low-income and rural regions. These lenders use public and private partnerships to finance small businesses, affordable housing, and essential community services.
The $324 million included in a FY2025 appropriations package was intended to continue and expand the reach of these programs.
“It’s imperative that congressionally-approved funds for the CDFI Fund are deployed strategically and in a timely manner,” the Senators wrote to Vought. “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.”
“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,” the Senators wrote.
The Senators’ effort is supported by the Mississippi Bankers Association and the Community Development Bankers Association.
The letter was led by U.S. Senators Mark Warner (D-Va.) and Mike Crapo (R-Idaho), co-chairs of the Senate Community Development Finance Caucus, of which Hyde-Smith and U.S. Senator Roger Wicker (R-Miss.) are members.
U.S. Senators Wicker, 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.) also signed the letter.
In March, Hyde-Smith also signed letter to Secretary Scott Bessent that emphasized the bipartisan support for the CDFI Fund and highlighted the fund’s critical role in providing capital to underserved communities.
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