Bills · S 3940
IN COMMITTEE· 119TH CONGRESS
Senate BillS 3940Finance and Financial Sector
Access to Fair Financing for Opportunity and Resilient Development Act
INTRO FEB 26· LAST ACTION FEB 26
READING
14MIN
COSPONSORS
48BIPARTISAN
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 to voters because it aims to boost economic development and provide financial opportunities in parts of the country that are often left behind by mainstream banks. If this bill becomes law, it could lead to more affordable housing, more support for small businesses, and greater access to financial services in distressed communities. The increased annual limit for bond guarantees means more large-scale projects, like community health centers or significant housing developments, could get funding through CDFIs.
Without this bill, CDFIs might face greater challenges in securing the long-term, stable capital needed to grow their lending and investment activities. The regular testimony by the Treasury Secretary also means more transparency and accountability for how federal money allocated to community development is being used. This could help ensure that programs are effective and responsive to the needs of the communities they are designed to serve, impacting everything from local job creation to the availability of essential services.
KEY PROVISIONS
5AI-extractedPROVISION 01
Requires the Secretary of the Treasury (or a designee) to annually testify before the Senate Banking Committee and House Financial Services Committee, if requested by the chairs, regarding the operations of the CDFI Fund during the previous fiscal year.
This provision increases congressional oversight and accountability for how the Community Development Financial Institutions Fund manages its programs and distributes resources.
PROVISION 02
Increases the annual guarantee limit for the CDFI Bond Guarantee Program to $1,000,000,000 and extends the program's authorization until at least December 31, 2030, or four years after the bill's enactment, whichever is later.
This change allows more long-term, large-scale capital to flow to Community Development Financial Institutions, supporting significant community development projects in underserved areas.
PROVISION 03
Expands the types of capitalization assistance the CDFI Fund can provide to organizations to enhance the liquidity of CDFIs, including purchasing loans or providing credit enhancements.
This makes it easier for CDFIs to manage their cash flow and maintain lending capacity, which is crucial for their ability to serve communities.
PROVISION 04
Increases the maximum amount of capitalization assistance an organization can receive from $5,000,000 to $20,000,000 and removes the restriction on receiving this award over a 3-year period.
This allows for larger and more flexible awards to organizations that help CDFIs with liquidity, potentially amplifying their impact on community development.
PROVISION 05
Requires the Secretary of the Treasury to issue a report within 3 years on the effectiveness of the CDFI Bond Guarantee Program.
This ensures a formal review of the program's performance, providing valuable data for future policy decisions and program improvements.
SPONSORSHIP
1 + 48
R· Montana
YRS IN OFFICE
13
BILLS LED
65
COSPONSOR BREAKDOWNBIPARTISAN · 72%
DEM 30 REP 17 IND 1
ACTION TIMELINE
2 EVENTSFEB 26
Introduced in Senate
FEB 26
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 3940
Congress119th
StatusIn Committee
IntroducedFeb 26, 2026
Last actionFeb 26, 2026
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED FEB 26, 2026
Senate BillS 3940Finance and Financial Sector
Access to Fair Financing for Opportunity and Resilient Development Act
INTRODUCED FEB 26, 2026· LAST ACTION FEB 26, 2026
PASSAGE CHANCES
—%
READING
14 min
COSPONSORS
48
COMPLEXITY
Moderate
