- Details
- By Brian Edwards
- Finance
A bipartisan group of U.S. senators is pressing the White House to release more than $300 million in delayed funding for the Community Development Financial Institutions (CDFI) Fund, including critical support for Native lenders serving tribal communities.
Led by Sens. Mark Warner (D-Va.) and Mike Crapo (R-Idaho), 26 senators sent a letter to Office of Management and Budget Director Russell Vought calling for the immediate obligation of $324 million appropriated by Congress for fiscal year 2025. Among the funding at risk is $28 million designated for the Native American CDFI Assistance (NACA) program, which has yet to be disbursed.
Pete Upton, CEO of the Native CDFI Network, said the funding delays are disrupting critical services to financially distressed and underserved Native communities. “Every day of delay disrupts critical lending and technical assistance. We urge OMB to release the funds immediately so Native communities are not left behind.”
According to the senators, the Treasury has not announced awards for five CDFI Fund programs, despite applications closing months ago, and has yet to open others for the current fiscal year. The senators asked OMB to provide a spending plan outlining timelines for obligating all discretionary funds.
Native CDFIs operate in areas where mainstream banks often do not. A 2024 study by the Federal Reserve Bank of Philadelphia found that 46% of Indian Country is considered a banking desert—12 times the national rate. NACA is the only federal program specifically tailored to address these systemic barriers by providing capital and technical assistance to Native-led lenders.
Tribal Business News previously reported that the Trump administration has indicated it will release only $4 million of the $28 million Congress allocated to the NACA program, withholding 86% of the funds. The administration’s fiscal 2026 budget proposed eliminating NACA entirely and placing Native CDFIs into a general rural funding pool; however, House appropriators have maintained support for Native CDFIs, including $35 million for the NACA program in the fiscal year 2026 appropriations bill.
Most Native CDFIs manage portfolios under $6 million with four or fewer full-time staff members, according to Federal Reserve Bank of Minneapolis research. They operate on tribal trust lands where title is often unclear, navigate complex tribal legal systems, and serve remote communities that mainstream banks consider unprofitable.
The NACA program was created in 2001 following a congressional study that documented systemic financial exclusion in Indian Country. At that time, only a handful of Native lenders existed. Today, 64 federally certified Native CDFIs plus three dozen emerging institutions serve tribal nations and urban Native communities.
The bipartisan letter was signed by senators from both parties, including Cory Booker (D-N.J.), John Boozman (R-Ark.), Bill Cassidy (R-La.), Steve Daines (R-Mont.), Dick Durbin (D-Ill.), Ruben Gallego (D-Ariz.), and others. It follows a March letter to Treasury Secretary Scott Bessent that emphasized bipartisan support for the CDFI Fund.
“It's imperative that congressionally-approved funds for the CDFI Fund are deployed strategically and in a timely manner,” the senators wrote. “Delay in the obligation of funds hinders critical projects in our states and could constrain the flow of capital to businesses and consumers who need it the most.”
