New Markets Tax Credits (NMTC) – $10B Awarded for 2024-2025

In late December 2025, the Trump Administration approved and announce the latest round of New Markets Tax Credits (NMTC) awards. NMTCs were made permanent under OBBBA. The U.S. Treasury announced that $10 billion in NMTC has been awarded for the double round for 2024-2025, funding investments in low-income communities, with 142 organizations receiving allocations for projects in real estate, businesses, and job creation, emphasizing rural and deep-distress areas. This double round combined allocations for two years, making it the largest single round in the program's history, and included reforms to focus on revitalization, with awards averaging over $70 million to support community development entities (CDEs). In 2025, NMTCs were made permanent with an annual $5B award allocation. U.S. Treasury is expected to announce the 2026 funding notice in the coming month. This presents a great opportunity for communities to get engaged with NMTCs like never before. You can learn about the $10B award and find CDE award information here.

Learn About the 2024-2025 NMTC Award Winners


CDFA & Public Finance Network Send Message to Congress on Improving Tax-Exempt Bonds

In early January 2026, the Public Finance Network, which CDFA is a founding member of, sent a letter to the 119th Congress asking for collaboration and considering for Protecting & Enhancing Tax-exempt Municipal Bonds. This includes continued protection for municipal bonds and more importantly, Private Activity Bonds (PABs) that CDFA strongly advocates on behalf of. The letter, signed by over 40 national organizations, is yet another strong message from the PFN and supporting members to Congress reinforcing the importance of tax-exempt bonds for economic development. CDFA was founded for the purpose of preserving, protecting and improving Private Activity Bonds and this remains a core focus 44 years later. Learn more about CDFA’s advocacy efforts here. .

Read the CDFA PFN Letterr


CDFA's Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) Introduced in U.S. Senate (S.2100)

CDFA's is pleased to announce that Senators Ernst (R-IA) and Warner (D-VA) have introduced the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) in the U.S. Senate as S.2100. MAMBA, CDFA’s signature piece of policy, will modernize the IRC rules as they relate to small issue bonds, specifically the private activity bond rules for manufacturing bonds and first-time farmers. 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. CDFA expects bi-partisan introduction in the U.S. House of Representative shortly and will the begin to push this legislation through Congress for full passage.

Learn About MAMBA


CDFA Administration Transition Paper

The recommendations outlined in this paper provide a strategic roadmap for the Trump Administration and the 119th Congress to introduce development finance solutions to address our nation’s most pressing issue. These proposals have been carefully designed to tackle the complex and interrelated challenges confronting the U.S. economy. In addition, these policy ideas can be easily achieved by both administrative action by the White House and legislative action by Congress. These ideas are all geared towards engaging more private sector investment and driving capital in our communities. Nearly all of these ideas can be achieved in the first 100 days of the Trump Administration and the 119th Congress.

Read CDFA Administration Transition Paper


Development finance agencies are encouraged to let their voices be heard on Capitol Hill. To get engaged, contact CDFA.

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 stressed or rural parts of the country. While the program has been a success, key provisions of the program have already sunset, and the entire program is set to expire in 2026. Numerous proposals exist to extend and reform the program, and passage of a new Opportunity Zones 2.0 should be a major policy effort by 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, will expire in 2025. Making the NMTC program permanent would catalyze a long-term vision for community investment and give private sector investors a great ability to drive capital where it is most needed.

There are indications that Congress and the new Administration are taking steps to curtail or potentially eliminate all Tax-Exempt Bonds. Losing Tax-Exempt Bonds would devastate American communities and set economic development efforts back decades.

Help Us Preserve & Protect Tax-Exempt Bonds

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