Bills · S 2718
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2718Finance and Financial Sector
A bill to amend the Community Development Banking and Financial Institutions Act of 1994 to provide for capitalization assistance to enhance liquidity.
INTRO SEP 4· LAST ACTION SEP 4
READING
4MIN
COSPONSORS
6BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it aims to boost the financial stability and lending capacity of Community Development Financial Institutions (CDFIs), which are crucial for economic growth in underserved areas. If CDFIs have more cash available, they can make more loans for things like affordable housing, small business growth, and community facilities, directly addressing unmet financial needs where traditional banks may not operate. This can lead to more jobs, better housing options, and increased access to essential services in struggling communities.
Without this bill, CDFIs might struggle to maintain enough cash to meet lending demand, potentially slowing down development in areas that rely on them. By enhancing their ability to turn existing loans into new cash, the bill allows CDFIs to keep their lending pipeline active. The reallocation of funds from the Emergency Capital Investment Program means that money that was already committed to supporting financial institutions will now be directed to specifically strengthen CDFIs and their impact on community development, rather than returning to the general treasury without a specific purpose.
KEY PROVISIONS
5AI-extractedPROVISION 01
Expands the types of assistance the CDFI Fund can provide to include purchasing loans, offering guarantees, or other forms of credit enhancement to enhance the liquidity of CDFIs.
This allows the CDFI Fund to use new methods to help CDFIs have more cash on hand, enabling them to make more new loans.
PROVISION 02
Increases the maximum assistance an organization can receive from the CDFI Fund from $5 million to $20 million and removes the 3-year waiting period between awards.
This provides significantly more financial support to eligible organizations, potentially leading to greater impact in enhancing CDFI liquidity.
PROVISION 03
Allows organizations that are not CDFIs themselves, but have a primary purpose of community development, to receive assistance if they can help CDFIs free up cash.
This broadens the pool of entities that can participate in strengthening the financial health of CDFIs, bringing in specialized expertise.
PROVISION 04
Directs all funds repaid to the Treasury from the Emergency Capital Investment Program into the CDFI Fund for use in the new liquidity program and other CDFI assistance.
This provides a dedicated funding source for the new assistance programs and ensures that money previously invested in financial institutions continues to support community development.
PROVISION 05
Requires annual reports to Congress through 2028 on the use of funds, the effect on affordable housing loans, and the impact on CDFI competitiveness and liquidity.
This ensures accountability and transparency, allowing Congress and the public to monitor the effectiveness and impact of the new program.
SPONSORSHIP
1 + 6
D· Virginia
YRS IN OFFICE
17
BILLS LED
55
COSPONSOR BREAKDOWNBIPARTISAN · 67%
DEM 2 REP 4 IND 0
ACTION TIMELINE
2 EVENTSSEP 4
Introduced in Senate
SEP 4
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 2718
Congress119th
StatusIn Committee
IntroducedSep 4, 2025
Last actionSep 4, 2025
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED SEP 4, 2025
Senate BillS 2718Finance and Financial Sector
A bill to amend the Community Development Banking and Financial Institutions Act of 1994 to provide for capitalization assistance to enhance liquidity.
INTRODUCED SEP 4, 2025· LAST ACTION SEP 4, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
6
COMPLEXITY
Moderate
