ICYMI: Senators announce bipartisan caucus to support CDFIs, MDIs

Posted: Aug 3, 2022 | Author: Cornerstone League

advocacy CDFI Department of Treasury

A bipartisan group of U.S. senators announced the creation of a new legislative caucus for the community development financial institution industry, Democratic Sen. Mark Warner of Virginia announced on Monday.

A subset of smaller financial institutions certified by the Treasury Department to do a certain portion of their business in low-income communities, CDFIs have existed since the 1990s but have taken on increasing relevance in recent years and become the target of billions of dollars in new federal funding.

In a video released Aug. 1, Warner said the caucus would focus its efforts on supporting CDFIs as well as minority depository institutions, a federal designation for banks controlled by a majority of Black, Indigenous, or other stakeholders of color.

The announcement comes two weeks after Warner introduced the Scaling Community Lenders Act with Republican Sen. Bill Haggerty of Tennessee. That bill would attempt to funnel more private capital towards CDFIs.