The Early Bird Rates for our course offerings at the 2025 National Development Finance Summit, co-hosted with Grow America, end on Friday, September 19! Don't miss the CDFA Fundamentals and Intro Opportunity Zones Courses in Puerto Rico!

The Federal Reserve cut its benchmark interest rate by 0.25%, marking a pivotal shift toward a more accommodative policy. This is the first reduction since December 2024. The bond market responded immediately, with investors reassessing strategies for short- and long-term yields. While the cut aims to stimulate activity, it also brings new complexity and potential volatility, requiring careful action from market participants.

Natural disasters, like wildfires, floods, and hurricanes, can devastate communities and the infrastructure projects they rely on. For cities, towns, and villages, this creates additional risks when these projects are financed using municipal bonds, as the debt remains regardless of whether the infrastructure is delayed or destroyed. The National League of Cities is offering a chance to discuss how to prepare bond-funded projects against natural disasters on October 13 from 2:00-3:00 PM. Learn more.

Baltimore is launching a City-Wide Affordable Housing TIF (Tax Increment Financing) program. The goal is to utilize TIF funds to support the redevelopment of vacant buildings into affordable housing—either rental units or homes that people can own. Up to $150 million in bond proceeds will be available over multiple application rounds. The first application round opens September 19, 2025, with virtual information sessions offered beforehand.

FSA is issuing approximately $1 billion in emergency relief payments to help offset increased supplemental feed costs due to a qualifying flood or wildfire. Livestock producers can receive payment for one or both years. The Emergency Livestock Relief Program (ELRP) for Flooding will provide assistance for losses due to flooding or wildfire on non-federal lands. Sign-up starts September 15, 2025, and ends October 31, 2025.

The Rural Qualified Opportunity Zones (RQOZs) provision in the One Big Beautiful Bill offers a powerful set of tax incentives for private investors to pour capital into rural communities that need it most. This economic tool includes deferral and reduction of capital gains taxes for investments in businesses, infrastructure, and housing in federally designated rural zones.

The $18 million funding for the Patrick Leahy Farm to School Grant Program has been reinstated for fiscal year 2026, reversing a previous cancellation of $10 million in 2025. Grants must now be at least $100,000, and applicants (e.g., schools) must form more formalized partnerships, signaling a move toward fewer, larger-scale projects. While the reinstated funding offers relief to those concerned by the prior cancellation, many development and community food system professionals caution that it does not compensate for cuts in other programs like SNAP-Ed, Local Food for Schools, and regional food business support.

Among the LIHTC-related changes enshrined in OBBB is a permanent 12% increase in the annual allocation to states of 9% credits, typically used for new construction. This increase has the potential to increase new construction by 12%. The shift from a 50% test to a 25% test will likely have an even bigger impact. Even with higher costs, the new provisions offer a unique opportunity for rehab projects.

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During this installment of the CDFA // BNY Development Finance Webcast Series, panelists discuss how municipal bonds can be used widely and effectively in the revitalization of rural America.

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