A bill that seeks to ensure that operations surrounding the Community Development Financial Institutions (CDFI) fund are more transparent was introduced in the U.S. Senate this week.
The CDFI Fund Transparency Act (S. 2704) would require the Secretary of the Treasury to testify annually before the Senate Banking and House Financial Services Committees regarding the operations of the CDFI Fund during the previous fiscal year.
“CDFIs play a critical role in helping hardworking families in Montana, especially those in rural or underserved communities, gain access to the opportunities they need for financial success. I’m proud to join my colleagues in introducing this bipartisan amendment that will help boost economic development and ensure transparency surrounding the operations of the CDFI fund,” U.S. Sen. Steve Daines (R-MT), one of the bill’s sponsors, said.
Daine introduced the bipartisan bill along with Sens. Mark Warner (D-VA), Mike Crapo (R-IS), and Raphael Warnock (D-GA).
“Since its inception over three decades ago, the CDFI Fund has played a crucial role in fostering economic growth in low-income and rural communities across Virginia. By requiring greater oversight over the program, this bipartisan bill will boost accountability and transparency, allowing the Fund to better serve communities,” Warner said.
CDFIs play a key role in bringing capital and financial services to a wide range of small businesses, homeowners and housing developers.
The bill is supported by America’s Credit Unions.
“Transparency builds trust among decision makers and the public. The Community Development Financial Institutions (CDFI) Fund plays a critical role in strengthening vulnerable Americans, low-income and underserved communities—it must remain focused on its mission. To ensure that accountability and trust remain strong, we thank Senator Daines for introducing the CDFI Fund Transparency Act. The provisions within this bill are essential to ensuring the CDFI Fund continues its impact for millions of Americans in need, and we urge Congress to advance and pass this legislation, Jim Nussle, president and CEO of America’s Credit Unions, said.