Congress expands lending to underserved communities and Native tribes
S. 3940 — Access to Fair Financing for Opportunity and Resilient Development Act · Filed by Steve Daines (R-MT) · 48 cosponsors · Introduced Feb 26, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill strengthens federal support for community development financial institutions (CDFIs)—lenders that serve underserved and low-income communities—by expanding bond guarantee programs, increasing liquidity assistance, and creating a dedicated lending program for Native American, Alaska Native, and Native Hawaiian communities. The bill requires annual Treasury testimony on CDFI operations, raises the bond guarantee cap to $1 billion annually, allows the CDFI Fund to purchase loans and provide credit enhancements, and sets aside up to $50 million annually for Native CDFIs to make mortgages in rural tribal areas.
Why we flagged it
The bill's core function is to expand federal lending and guarantee programs for community development financial institutions, with a specific focus on increasing capital availability and homeownership access in underserved and Native American communities. This is straightforward community development policy, not a hidden carve-out or deregulation.
What the text implies
- The $50 million annual set-aside for Native CDFIs may create demand that exceeds available funding, potentially requiring future appropriations battles or program expansion debates.
- Loan purchase authority granted to the CDFI Fund (section 4) could accumulate significant portfolio risk if not carefully managed; the bill requires reporting but does not establish explicit risk-management guardrails.
The full analysis lists 4 implications of this text.
Who stands to gain
Community development financial institutions (CDFIs); Native American-owned and Alaska Native-owned financial institutions; Rural mortgage lenders serving tribal communities