Community Development Bankers Association

‘Tis the season for peace and joy — and also for reflection. We look back on a year marked by change and challenge and are more grateful than ever for your partnership and dedication in meeting the moment together. We look forward to a prosperous and fulfilling 2026!

U.S. Sens. Mark R. Warner (D-VA) and Mike Crapo (R-ID), co-chairs of the Senate Community Development Finance Caucus, yesterday led a bipartisan group of 26 senators (13 Democrats, 13 Republicans) in a letter to Office of Management and Budget (OMB) Director Russell Vought urging swift action to disburse congressionally appropriated funding from the Community Development Financial Institutions Fund (CDFI Fund). Signers included CDFI Caucus leadership and Senate Banking Committee Chair Tim Scott (R-SC).

The letter demonstrates the wide bipartisan support for CDFIs generally, and the role of the CDFI Fund in particular. It calls for transparency and timeliness in deploying the $324 million allocated in the fiscal year 2025 spending package to support over 1,400 CDFIs across the country. As it stands, OMB has not approved the FY 2025 BEA notice of funding with just two months left in the fiscal year, and OMB’s 2026 budget projected that no 2025 BEA monies would be obligated. Failure to obligate monies places those funds at risk of expiration.

"We look forward to Director Vought's positive reception and prompt action regarding the Senate CDFI Caucus's letter."

-Jeannine Jacokes, CDBA CEO

Read the full letter and list of signees here:https://www.cdbanks.org/sites/default/files/pdfs/7.29.2025%20Letter%20to%20OMB%20CDFI%20Fund%2013.13.pdf

CDBA continues to engage Federal policymakers on matters of urgent importance, especially the delay in the release of the FY 2025 Notice of Funding Availability (NOFA) for the BEA Program and growing concerns that the Administration intends to impede the release of FY 2025 monies under the CDFI Program (Financial and Technical Assistance Awards) umbrella.

This past Friday, CDBA sent a policy brief to key members of Congress that demonstrates how the Office of Management and Budget’s (OMB) FY 2026 budget and projections for FY 2025 suggest that funding by Congress is being placed at risk of expiration. There is an urgent need for Congress to take action to prevent OMB from unlawfully withholding appropriated funds.

"Failure by OMB to release appropriated monies and/or approve paperwork needed by Treasury to implement the CDFI Fund’s programs will result in the expiration of the Treasury’s authority to obligate the money," the brief said. "Such an outcome is in direct conflict with Congressional authority and intent."

Our analyses helped inform our conversations with Claire Williams as she reported on the issue for yesterday's lead article in American Banker, "Trump Admin Lets Bank CDFI Program Wither on the Vine.”

Read CDBA’s policy brief and more in the most recent edition of the CDBA Newsflash: https://lnkd.in/eAV9MpTZ

CDBA Newsflash: Webinars, Peer Groups, Policy, and Practice

Trump Admin Lets Bank CDFI Program Wither on the Vine

"These resources help small banks retain branches in remote rural areas, offer small dollar loans that keep people from going to payday lenders, and make homeownership a reality to a family that otherwise would remain renters," said Jeannine Jacokes, CEO of the Community Development Bankers Association.

Read the full article: https://www.americanbanker.com/news/trump-admin-lets-bank-cdfi-program-wither-on-the-vine

Trump admin lets bank CDFI program wither on the vine Calls for applications for a bank-specific program within the Community Development Financial Institution Fund have been delayed, raising the possibility that those funds are unspent before the appropriated money expires.

Thank you to all who contributed to the success of this year's CDBA Peer Forum!

This year's Advocacy Day was a record breaking event. CDBA members held 54 bipartisan, bicameral meetings on Capitol Hill.

-29 Republicans, 25 Democrats
-30 Representatives, 24 Senators

Overall, 150 bankers representing 59 CDFI and mission-focused banks travelled to Washington, D.C. for three days of advocacy, education, and networking. They were joined by 26 sponsor organizations and a wide range of industry allies who led and participated in this year's programming.

Takeaways from this year's conference:

-Congressional support for CDFI banks is strong and growing.
-Key members of the Administration acknowledge the value of CDFI banks.
-One of the CDFI industry's great strengths is its adaptability and resilience, even in the most pressurized political and economic climates.

It's never too early to start planning for next year! Mark your calendars for June 2-4, 2026.

Jennifer Scholtes at POLITICO reports that the White House Office of Management and Budget is putting a controversial “end-run” around Congressional funding power into practice.

CDBA identified this tactic as a risk to CDFI Fund programs in May of this year, with the delayed release of the FY 2025 Bank Enterprise Notice of Funding Availability, or “NOFA”. Any delay in releasing FY25 NOFAs, or rescinding funds for already announced FY 2025 awards such as the Financial Assistance (FA) and Native (NACA) awards, risks stalling critical financing from community development banks and other CDFIs that serve urban, rural, native and other low- and moderate-income communities.

Ms. Scholtes writes:

“The White House budget director has been persistently touting the virtues of ‘pocket rescissions,’ a tactic he has floated as a way to codify the spending cuts Elon Musk made while atop his Department of Government Efficiency initiative, and which the federal government’s top watchdog says is illegal. On Capitol Hill, leading GOP appropriators see Vought’s comments as another shot against them in an escalating battle with the Trump administration over Congress’ “power of the purse” . . .

‘Pocket rescissions are illegal, in my judgment,’ Senate Appropriations Committee Chair Susan Collins (R-Maine) said in a brief interview this week, ‘and contradict the will of Congress and the constitutional authority of Congress to appropriate funds.’”

Read the full article here:

White House floats new funding trick — and GOP lawmakers grimace The Republicans in charge of funding the government don't like what they're hearing from President Donald Trump's budget chief.

On June 2nd, Southern Bancorp announced that they had entered into an agreement to acquire Legacy Bank and Trust. Both banks are proud CDFIs and CDBA members who have done impactful work in their communities. Listen to Southern Bancorp CEO and Former CDBA Chairman Darrin Williams talk about the merger and their joint future on Talk Business & Politics with Roby Brock: https://lnkd.in/eVsBh_Gr

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Thank you to by José Andrés for hosting this year's Peer Forum Dinner!

"Thank you to for kicking off our third and final day of Peer Forum!

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Thank you Michael Faulkender for your fireside chat at this year’s Peer Forum. We are grateful for the opportunity for our bankers to hear how the administration will work with them to improve their communities!

During the COVID-19 pandemic, Deputy Secretary Faulkender assisted in negotiating the CARES Act and was the senior Treasury official who led the implementation of the Paycheck Protection Program (PPP). The Emergency Capital Investment Program (ECIP) was also negotiated during his tenure.