SSBCI Coalition Calls for Treasury Guidance as Program Winds Down

CDFA and members of the SSBCI Coalition recently urged the U.S. Department of the Treasury to provide timely guidance on the conclusion of SSBCI and the long-term treatment of SSBCI funds. The letter calls for clarity on program closeout, reporting requirements, recycled capital, program modifications, evergreen structures, and governance. The Coalition also urged Treasury to establish a clear pathway to defederalize and unencumber funds after jurisdictions complete federal requirements, allowing recycled capital to continue supporting small businesses and entrepreneurs. CDFA will continue the discussion around program implementation, lessons learned, and long-term sustainability at the in-person SSBCI Convening on Wednesday, November 18th, at the 2026 National Development Finance Summit.

Register for NDFS Here


Treasury Extends Opportunity Zone Designation Period for States and Territories

The U.S. Department of the Treasury granted an automatic 30-day extension to every jurisdiction’s Opportunity Zone determination period, giving states and territories until October 28, 2026, to submit designations without requiring Governors to request an extension. Separately, the IRS and Treasury issued Notice 2026-55 on September 22, requesting comments on the amended Opportunity Zone regime, including guidance for Qualified Opportunity Funds (QOFs), Qualified Opportunity Zone Businesses (QOZBs), working capital safe harbors, 10-year investment elections, and investments in Tribal and Alaska Native communities. Written comments are due November 23, 2026.

Read Notice 2026-55 Here


Federal Film and TV Tax Credit Gains Senate Support

The bipartisan Motion Picture, Television, and Entertainment Revitalization Act (H.R. 10582), introduced on September 24, 2026, gained eight new Senate co-sponsors. The legislation would establish a 20% federal tax credit for qualifying film and television productions, with 5% bonus credits for productions in rural Opportunity Zones or disaster areas, independent productions, and projects that increase domestic production. The bill would complement state incentives and allow producers to transfer credits. Negotiations remain ongoing as lawmakers consider potential year-end tax or spending legislation.

Read the Motion Picture, Television, and Entertainment Revitalization Act Here


Digital Asset Tax Certainty Act (H.R. 10357) Advances in House Committee

The Digital Asset Tax Certainty Act (H.R. 10357), introduced on September 14, 2026, advanced to the full House by the House Ways and Means Committee on September 16 in a 38-5 vote. The bill would establish federal tax rules for digital assets, including provisions addressing reporting, wash sales, mining and staking, a $10 de minimis threshold for certain transactions, and a voluntary disclosure program. Further consideration is unlikely before the November elections, with no additional House floor days currently scheduled in October.

Read the Digital Asset Tax Certainty Act Here


CLARITY Act (H.R. 3633) Fails to Advance in Senate

The Digital Asset Market Clarity (CLARITY) Act (H.R. 3633), which would establish a federal regulatory framework for digital assets and clarify the roles of the Securities and Exchange Commission and Commodity Futures Trading Commission, advanced through the Senate Banking Committee on a 15-9 vote in May 2026. On September 15, a Senate vote to begin consideration of the bill failed 49-50, falling short of the 60 votes needed to advance. A motion to reconsider the vote was subsequently entered.

Read the CLARITY Act Here


Farm Bill Reauthorization Remains Unresolved as Congress Faces Year-End Deadline

The remaining authorities of the 2018 Farm Bill expired on September 30, 2026, following three extensions since its original 2023 expiration. The House passed the Farm, Food, and National Security Act of 2026 (H.R. 7567) on April 30 by a 224-200 vote. On September 16, the Senate Agriculture Committee advanced the Agricultural Act of 2026 (S. 5526), after an earlier version failed to advance in August. Senate Agriculture Committee Chairman John Boozman said negotiations with House counterparts are underway, with the goal of passing a final farm bill before the end of the year.

Read the Agricultural Act of 2026 Here


Federal Funding Law Temporarily Blocks Changes to Grant Approval Process

On September 3, 2026, President Trump signed the Continuing Appropriations and Extensions Act, 2027 (H.R. 6500), which funds the federal government through December 11 and temporarily blocks the Office of Management and Budget (OMB) from implementing proposed changes to the federal grant approval process. The provision prevents OMB from finalizing or implementing a rule that would give political appointees greater authority over federal grant awards, as well as substantially similar rules, during the funding extension. The temporary restriction provides Congress additional time to consider changes to federal grant approval and oversight.

Read the Continuing Appropriations and Extensions Act Here


GAO Reviews Changes to Opportunity Zone Program

On August 24, 2026, the U.S. Government Accountability Office (GAO) released a report examining the Opportunity Zone (OZ) incentive and changes enacted through the One Big Beautiful Bill Act. GAO found that revised eligibility criteria will reduce the number of census tracts eligible for future OZ designation, potentially helping states focus the incentive on communities with greater economic need. The report also found that OZ investment has primarily supported urban real estate development, while stakeholders expressed mixed views on whether new rural incentives will change investment patterns. New reporting requirements for Qualified Opportunity Funds and Treasury may also improve information available to evaluate the program’s economic effects.

Read the Full Report Here


SBA Announces 90% Loan Guarantee for Energy Sector

On August 14, 2026, the U.S. Small Business Administration (SBA) announced a new 90% Energy Guarantee through its International Trade Loan (ITL) Program for eligible small businesses across the energy production supply chain. Established through updated SBA lending guidance, the enhanced guarantee is intended to encourage private investment in energy production, distribution, grid modernization, and equipment manufacturing. The 90% guarantee exceeds the standard 75% guarantee under the SBA’s 7(a) Loan Program and follows similar guarantees for domestic manufacturing and grocery businesses. Treasury's 2023 analysis of the program and provides additional data on the use of the OZ tax incentive as policymakers continue to evaluate the program's future.

See the SBA Lending Guidance Here


Treasury Reports Continued Growth in Opportunity Zones Investment

The U.S. Department of the Treasury recently released a working paper, Use of the Opportunity Zones Tax Incentive through 2024: An Update, reporting continued growth in Opportunity Zones (OZ) investment. Total qualified investment reached $112 billion through tax year 2024, up from $44 billion reported through tax year 2020. The report also found that 77 percent of designated Opportunity Zones have received qualified investment, compared to 48 percent in Treasury's original analysis. The paper updates Treasury's 2023 analysis of the program and provides additional data on the use of the OZ tax incentive as policymakers continue to evaluate the program's future.

Read the Working Paper Here


House Passes FY 2027 NDAA with Major Maritime Provisions

On July 22, 2026, the U.S. House of Representatives passed the Fiscal Year 2027 National Defense Authorization Act (NDAA), which includes significant provisions aimed at strengthening the nation’s maritime industry and shipbuilding capacity. The legislation would modernize federal maritime policy through expanded shipbuilding financing tools, workforce development initiatives, new cargo preference requirements favoring U.S.-flagged vessels, and the creation of a Maritime Security Trust Fund to support long-term investment in maritime infrastructure. The provisions reflect growing congressional interest in rebuilding the U.S. maritime industrial base, strengthening domestic supply chains, and supporting America’s ports and shipyards. The NDAA now moves to the Senate, where lawmakers will consider the legislation and work to reconcile differences later this year.

Read the Fiscal Year 2027 NDAA


Major Housing Package Becomes Law

On July 11, 2026, the bipartisan 21st Century ROAD to Housing Act became law, marking the first major bipartisan housing package enacted since the 1990s. The legislation is intended to increase housing affordability through a range of housing policy reforms and previously passed both the House and Senate with bipartisan support. CDFA will continue monitoring implementation of the law and any related federal guidance as the new provisions are put into effect.

Read the 21st Century ROAD to Housing Act Here


IRS Issues Transitional Opportunity Zones Guidance

On June 18, 2026, the U.S. Department of the Treasury and Internal Revenue Service (IRS) released Notice 2026-40, providing transitional guidance for the Opportunity Zones (OZ) program following changes enacted in the One Big Beautiful Bill Act. The notice outlines how the current OZ framework will transition to the revised program beginning in 2027 and previews proposed regulations that Treasury and the IRS intend to issue. For the development finance community, the guidance provides greater clarity on the timeline for newly designated Qualified Opportunity Zones (QOZs), transition rules for existing Qualified Opportunity Funds (QOFs), and how certain projects may continue to qualify after current zone designations expire. While the notice does not finalize the regulations, it provides important direction as stakeholders prepare for the next phase of the Opportunity Zones program. CDFA will continue monitoring Treasury's forthcoming regulations and share additional guidance as it becomes available.

Read the Transitional Guidance Here


CDFA's Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) Introduced in U.S. House (H.R.9100)

The Council of Development Finance Agencies (CDFA) and the National Council of State Agricultural Finance Programs (NCOSAFP) are pleased to announce that U.S. Representatives Darin LaHood (IL-16), Randy Feenstra (IA-04), Terri Sewell (AL-07) and Dwight Evans (PA-03) have introduced the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) in the U.S. House as H.R.9100. MAMBA represents the most comprehensive reform to manufacturing and agricultural bonds since the 1980s. This piece of legislation will help drive U.S. global competitiveness, grow small manufacturers, and drive growth in American communities. With a companion bill introduced in the Senate–S.2100–MAMBA has now been introduced in both chambers. CDFA and NCOSAFP will work with their members and partners across the country to push this legislation through Congress for full passage.

Learn About MAMBA


CDFA Featured in The Bond Buyer: Mega Muni Bill Explored

In a recent interview with The Bond Buyer, CDFA President and CEO Toby Rittner discussed ongoing efforts to work with members of the Public Finance Network and other stakeholders to develop a broad municipal bond reform package aimed at expanding and modernizing development finance tools. The proposed “mega muni bill” would include a range of technical corrections and policy updates, including restoring advance refunding, increasing the bank-qualified debt limit, reforming manufacturing and agriculture bonds, reinstating the Federal Home Loan Bank letter of credit program, and making 501(c)(3) bonds bank qualified. CDFA and its partners view the current congressional environment as an opportunity to advance long-standing bond priorities that would strengthen issuers’ ability to finance infrastructure, community facilities, manufacturing, and economic development projects nationwide.

Read the Full Article

Overview

CDFA is committed to fulfilling numerous development finance policy objectives in the 119th Congress (2025-2026), including the improvement of tax-exempt bonds, reinstatement of the brownfields redevelopment tax incentive, and continued support for critical federal financing programs. This agenda is borne out of CDFA’s four decades as a national leader in the development finance industry and is crafted to address market-based access to capital challenges. CDFA is prepared to assist Congress with implementation of the following policy priorities:

• INTRODUCED: Priority 1: Reform Manufacturing and Agricultural Bonds - Passing the Modernizing Agricultural and Manufacturing Bonds Act will update the tax code's private activity bond rules for Industrial Development Bonds and Agricultural Bonds.


• Priority 2: Create Permanent Disaster Recovery Bonds - Create a permanent bond financing tool that can be accessed immediately after disaster strikes, and that can leverage private investment for longer-term redevelopment of essential infrastructure.


• ACHIEVED: Priority 3: - Preserving and Protecting Tax-Exempt Bonds - It is imperative that the Administration and Congress preserve and protect tax-exempt bonds as part of any update to the federal tax code. Proposals to restrict, cap, and/or eliminate the tax-exemption status of municipal and private activity bonds should be opposed, while the tax exemption itself should be strengthened where possible.


• Priority 4: Strengthening the State Small Business Credit Initiative - The State Small Business Credit Initiative (SSBCI) is a practical, pragmatic, and proven program that is helping America’s small businesses access lower-cost capital, thereby creating high-quality jobs – especially in underserved communities. An opportunity exists to bolster SSBCI by expediting Treasury’s review of applications and disbursement of funds for this program. In addition, additional funding for the SSBCI program would go a long way toward ensuring an evergreen state presence in supporting small business development.


• ACHIEVED: Priority 5: Revitalizing Opportunity Zones - Opportunity Zones, created by the Tax Cuts and Jobs Act in 2017, were established to spur economic development and job creation in distressed and rural parts of the country. Opportunity Zones 2.0 was enacted as part of the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025. The legislation made the Opportunity Zones program permanent while updating its framework to strengthen and improve the program. As implementation moves forward, ensuring effective guidance and supporting successful deployment of the updated program should remain a major policy priority for the Administration and the 119th Congress.


• Priority 6: Expanding Affordable Housing Inventory - Affordable housing development must be a critical focus of the Administration and the 119th Congress. In 2024, bipartisan, thoughtful legislation known as the Revitalizing Downtowns and Main Streets Act was introduced and would create a temporary federal tax credit to encourage the conversion of vacant and underutilized commercial properties into residential housing.


• ACHIEVED: Priority 7: Permanently Authorizing New Markets Tax Credit - The New Markets Tax Credit (NMTC) program, created in 2000 to incentivize community development and economic growth in under-resourced neighborhoods, was made permanent through the One Big Beautiful Bill Act (OBBBA). Permanently extending the NMTC program provides greater certainty for community development efforts and gives private sector investors an enhanced ability to drive capital where it is most needed. As implementation continues, ensuring the long-term success of the program should remain a key federal policy priority.

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