ICBA supports inclusion of CDFI amendments in defense bill

ICBA said it supported four pieces of legislation aimed at strengthening community development financial institutions that are being considered as an amendment to the National Defense Authorization Act.

ICBA-Supported Amendments: In a letter to Senate Armed Services Committee Chairman Roger Wicker (R-Miss.), ICBA urged the inclusion of the CDFI Fund Transparency Act, the CDFI Bond Guarantee Improvement Act of 2025, the Scaling Community Lenders Act, and a provision of the Rural Housing Service Reform Act of 2025 supporting Native CDFIs.

What It Means for Community Bankers: ICBA noted that CDFI banks provide capital and financial services to underserved populations and local businesses, and these bills will enhance their capacity and effectiveness to deliver that capital and those services.

Past CDFI Support: After President Donald Trump in March issued an executive order directing the Treasury Department to eliminate the non-statutory components of the CDFI Fund, ICBA:

• Reaffirmed its support for the CDFI Fund in a letter to Treasury Secretary Scott Bessent and a joint letter to the Senate CDFI Caucus.

• Said it would continue actively engaging with the Trump administration, the Treasury Department, and members of Congress to protect the operations of the CDFI Fund.

• Called on congressional appropriators to support $324 million for the CDFI Fund, including a $40 million allocation for the Bank Enterprise Award Program.