ND North News

A bipartisan group of U.S. senators has called on the Office of Management and Budget (OMB) to expedite the release of $324 million in funding for Community Development Financial Institutions (CDFIs). The funds were approved by Congress as part of the Fiscal Year 2025 appropriations package but have not yet been distributed, causing concern among CDFIs that rely on these resources.

CDFIs are designed to foster economic growth and provide financial services in areas underserved by traditional banks. In North Dakota, federal programs such as New Market Tax Credits and CDFI Loans have directed over $120 million and $21 million respectively toward projects including affordable housing, healthcare, manufacturing, small businesses, and tribal communities.

U.S. Senator Kevin Cramer (R-ND), along with Senators Mike Crapo (R-ID), Mark Warner (D-VA), and others from both parties, sent a letter to OMB Director Russell Vought urging prompt action.

“Since its inception over three decades ago, the CDFI Fund has proven critical to the CDFI sector’s success and has met the mission to create a public-private partnership to promote access to capital in our most underserved rural and urban communities,” the senators wrote. “Each year CDFIs leverage federal dollars from the CDFI Fund with private-sector investment to boost small business formation, increase housing production, and deliver new capital to America’s forgotten communities."

“It’s imperative that congressionally-approved funds for the CDFI Fund are deployed strategically and in a timely manner,” they continued. “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 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.”

The letter was also signed by more than twenty other senators from both parties. The full text of their letter is available here.