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119-s-1880119th CongressWALLET

CDFI Bond Guarantee Program Improvement Act of 2025

Sponsored By: Senator Smith, Tina [D-MN]

Introduced

Summary

Strengthen and extend the CDFI Bond Guarantee Program. This bill would reshape how bond guarantees work, set a $25 million minimum per guaranteed transaction, cap annual guarantees at $1.0 billion, extend the program’s sunset by four years, and require Treasury evaluations.

Show full summary
  • CDFIs: The bill would remove a rule tying guarantee size to outstanding principal and instead set a $25 million floor per guarantee. That change would make guarantee sizing more predictable and favor larger community development financings.
  • Underserved communities and projects: By promoting larger guaranteed deals and a longer program horizon, community and economic development projects in distressed areas could gain steadier access to long-term capital.
  • Treasury and oversight: The Secretary of the Treasury would have to report on program effectiveness to House and Senate banking committees at 1 year and again at 3 years after enactment.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

New size rules for CDFI guarantees

If enacted, the Secretary could not guarantee any bond for less than $25 million. The total of all guarantees in one fiscal year could not exceed $1 billion. The bill would also remove the statutory rule that tied guarantee size to the outstanding principal balance of a bond. These changes could shift program support toward larger financings and make small issuances less likely to qualify.

Extend CDFI program and reports

If enacted, the bill would extend the bond guarantee program through a date 4 years after enactment, replacing the older sunset date. The Treasury Secretary would also have to report to Congress on the program's effectiveness within 1 year and again within 3 years after enactment. These steps would preserve the financing tool and add formal oversight.

Sponsors & CoSponsors

Sponsor

Smith, Tina [D-MN]

MN • D

Cosponsors

  • Sen. Rounds, Mike [R-SD]

    SD • R

    Sponsored 5/22/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 5/22/2025

  • Sen. Daines, Steve [R-MT]

    MT • R

    Sponsored 5/22/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 5/22/2025

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 5/22/2025

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 5/22/2025

  • Sen. Hyde-Smith, Cindy [R-MS]

    MS • R

    Sponsored 5/22/2025

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 5/22/2025

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 5/22/2025

  • Sen. Blunt Rochester, Lisa [D-DE]

    DE • D

    Sponsored 5/22/2025

  • Sen. Crapo, Mike [R-ID]

    ID • R

    Sponsored 5/22/2025

  • Sen. Warner, Mark R. [D-VA]

    VA • D

    Sponsored 9/11/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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