CDFI Fund Transparency Act
- Bill Number
- S. 2704
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-09-04: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-03-22T23:36:00Z
AI-Generated Summary
Purpose
The CDFI Fund Transparency Act aims to enhance transparency and accountability in the operations of the Community Development Financial Institutions (CDFI) Fund, a U.S. government program that supports financial institutions serving low-income and underserved communities.
Key Provisions
- Annual Testimony Requirement: The Secretary of the Treasury (or a designated representative) must testify annually before the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services (or their subcommittees).
- Scope of Testimony: The testimony covers the CDFI Fund's operations during the previous fiscal year.
- Discretionary Nature: The testimony occurs at the discretion of the chairmen of the specified congressional committees.
Significant Changes to Existing Law
- Amends Section 104(b) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703(b)) by adding a new subsection (5).
- Introduces a mandatory annual reporting mechanism via congressional testimony, which was not previously required in the original law. This builds on existing oversight provisions without altering the Fund's core functions.
Potential Impacts
- On Government Agencies: Increases congressional oversight of the Department of the Treasury and the CDFI Fund, potentially leading to more detailed scrutiny of funding decisions, program performance, and resource allocation.
- On Citizens: Could indirectly benefit underserved communities by promoting greater accountability in how the Fund supports affordable housing, small business lending, and economic development initiatives, ensuring funds are used effectively.
- On International Relations: No direct impact, as the legislation focuses on domestic financial institutions and U.S. government operations.
Main Stakeholders Affected
- Department of the Treasury and CDFI Fund: Directly responsible for providing testimony and facing increased scrutiny.
- Congressional Committees: Gain enhanced tools for oversight, including the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services.
- Community Development Financial Institutions (CDFIs): Non-profit and for-profit lenders serving low-income areas may experience indirect effects through improved Fund accountability.
- Underserved Communities: Residents and businesses in economically disadvantaged areas who rely on CDFI services could see long-term benefits from more transparent Fund operations.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens existing statutory oversight without creating new enforcement mechanisms; testimony is advisory rather than binding, respecting separation of powers.
- Constitutional Implications: Aligns with Congress's constitutional authority to oversee executive branch spending and operations, promoting checks and balances without infringing on executive functions.
- Political Implications: Bipartisan sponsorship (by Senators Daines, Warner, Crapo, and Warnock) suggests broad support for accountability measures; could set a precedent for similar transparency requirements in other federal funds, potentially influencing future budget and appropriations debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Warner, Mark R. [D-VA], Sen. Crapo, Mike [R-ID], Sen. Warnock, Raphael G. [D-GA]
Recent Actions
- 2025-09-04: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-09-04: Introduced in Senate
Bill Versions
- CDFI Fund Transparency Act — issued 2025-09-04 — PDF (2 pages)