S. 3940: Access to Fair Financing for Opportunity and Resilient Development Act
This bill, known as the Access to Fair Financing for Opportunity and Resilient Development Act, aims to enhance financial support for community development financial institutions (CDFIs). It proposes several key changes and requirements related to the operations of these institutions.
Annual Testimony Requirement
The bill mandates that the Secretary of the Treasury (or their designee) must testify once a year before specific congressional committees regarding the previous fiscal year's operations of the CDFI Fund. This requirement facilitates oversight and transparency concerning the activities conducted under the CDFI program.
CDFI Bond Guarantee Program Improvement
The legislation proposes modifications to the CDFI Bond Guarantee Program, which is intended to ensure a sustainable source of long-term capital for CDFIs. Key changes include:
- Ensuring that guarantees for bonds and notes issued for community or economic development purposes are up to a minimum of $25 million per guarantee, with an annual total cap of $1 billion.
- Extending the program's operational deadline to four years after this bill’s enactment or December 31, 2030, whichever is later.
Capitalization Assistance to Enhance Liquidity
The bill also proposes providing specific forms of financial assistance through the CDFI Fund. This includes:
- Funds for purchasing loans originated by CDFIs or providing guarantees and credit enhancements to promote liquidity.
- Adjusting funding limits for financial assistance from $5 million to $20 million in certain contexts.
- Allowing the selection of organizations receiving assistance to be made based on their alignment with community development goals.
Native CDFI Relending Program
A significant aspect of this legislation is a dedicated program for Native community development financial institutions (CDFIs). It includes provisions for:
- Set aside of funds specifically aimed at supporting Native CDFIs with a maximum amount of $50 million for direct loans each fiscal year.
- Ensuring that funds are prioritized for homeownership within Indian, Alaska Native, and Native Hawaiian communities.
- Requiring that at least 20% of the loan amount received by Native CDFIs be matched with non-Federal funds, unless waived for specific circumstances.
Reporting and Accountability
The bill requires the Secretary of the Treasury to provide detailed annual reports to Congress. These reports will include:
- The total loans, guarantees, and enhancements provided to CDFIs, particularly those funding affordable housing initiatives.
- An evaluation of how these interventions affect the competitiveness and liquidity of CDFIs.
Funding and Technical Assistance
In addition to the financial modifications, the Act allocates funds for technical assistance aimed at supporting operational capacities of Native CDFIs, as well as outreach to assist eligible borrowers in accessing loans. A specified amount is authorized annually for these purposes.
Use of Funds
Lastly, it allows the Secretary to utilize a portion of the funds received from these programs to support community development financial institutions, providing flexibility in how these resources are allocated to enhance community investment efforts.
Relevant Companies
- USB (U.S. Bancorp): Likely to be impacted as they operate in community development finance and may seek to leverage CDFI funds for community programs.
- JPM (JPMorgan Chase & Co.): May participate in or be affected by broader economic development initiatives linked to the CDFI programs.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
35 bill sponsors
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TrackSteve Daines
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TrackAngela Alsobrooks
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TrackMichael F. Bennet
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TrackLisa Blunt Rochester
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TrackCory A. Booker
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TrackJohn Boozman
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TrackKatie Boyd Britt
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TrackBill Cassidy
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TrackChristopher A. Coons
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TrackKevin Cramer
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TrackMike Crapo
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TrackRichard J. Durbin
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TrackDeb Fischer
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TrackKirsten E. Gillibrand
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TrackMartin Heinrich
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TrackJohn W. Hickenlooper
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TrackJohn Hoeven
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TrackCindy Hyde-Smith
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TrackJames C. Justice
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TrackTim Kaine
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TrackAndy Kim
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TrackAmy Klobuchar
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TrackLisa Murkowski
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TrackGary C. Peters
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TrackJames E. Risch
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TrackMike Rounds
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TrackAdam B. Schiff
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TrackCharles E. Schumer
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TrackTim Sheehy
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TrackTina Smith
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TrackDan Sullivan
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TrackChris Van Hollen
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TrackMark R. Warner
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TrackRoger F. Wicker
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TrackRon Wyden
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Actions
2 actions
| Date | Action |
|---|---|
| Feb. 26, 2026 | Introduced in Senate |
| Feb. 26, 2026 | Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
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