CDFI Bond Guarantee Program Improvement Act of 2025

The CDFI Bond Guarantee Program Improvement Act of 2025 updates the existing CDFI Bond Guarantee Program (authorized under the Community Development Banking and Financial Institutions Act of 1994) to reauthorize and strengthen its framework. The bill clarifies and tightens how guarantees are calculated, sets a minimum guarantee floor and a total annual cap for guarantees, and extends the program’s sunset date. It also requires the Treasury to prepare two performance reports on the program’s effectiveness. Overall, the bill aims to provide a more stable, scalable source of long-term capital for community development financial institutions (CDFIs) to support underserved communities.