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119-s-2718119th CongressWALLET

A bill to amend the Community Development Banking and Financial Institutions Act of 1994 to provide for capitalization assistance to enhance liquidity.

Sponsored By: Senator Warner, Mark R. [D-VA]

Introduced

Summary

Expands liquidity tools for community development financial institutions (CDFIs) by letting the Capitalization Fund buy loans, provide guarantees or loan‑loss reserves, and otherwise support CDFI cash flow. The bill would also let non‑CDFI groups with a community development mission get Fund help and sets priorities for who wins awards.

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Bill Overview

Analyzed Economic Effects

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

More liquidity for community lenders

If enacted, the bill would let the Fund buy loans and loan parts from community lenders. It would let the Fund provide guarantees, loan-loss reserves, and other credit support to improve CDFI cash flow. The bill would treat some Housing and Community Development Act funds as federal money. The Fund could award money to community development groups that are not certified CDFIs and would set its own selection rules and priorities. It would raise a legal purchase limit from $5,000,000 to $20,000,000 and remove the "during any 3-year period" measurement. All money the Treasury gets from these purchases would go back into the Fund. That money could be used for financial help under section 113 and for financial and technical help under section 108. One part of section 108 would be waived. The Treasury Secretary would be allowed to write rules to run the Fund.

Annual Treasury report on Fund use

If enacted, the Treasury would report to Congress within 1 year after the Fund first gives help, and then each year through 2028. Each report would cover the prior 12 months. Reports must list totals for loans and loan parts bought from CDFIs, loans for affordable housing, and guarantees or loan-loss reserves. Reports must also describe how these purchases and guarantees affected CDFI liquidity and competitiveness.

Sponsors & CoSponsors

Sponsor

Warner, Mark R. [D-VA]

VA • D

Cosponsors

  • Sen. Crapo, Mike [R-ID]

    ID • R

    Sponsored 9/4/2025

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 9/4/2025

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 9/4/2025

  • Sen. Peters, Gary C. [D-MI]

    MI • D

    Sponsored 9/4/2025

  • Sen. Hyde-Smith, Cindy [R-MS]

    MS • R

    Sponsored 9/4/2025

  • Sen. Daines, Steve [R-MT]

    MT • R

    Sponsored 9/9/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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