Advocacy Center
CDFA is the voice of development finance on Capitol Hill and with the federal Administration by providing leadership on policy decisions that impact the industry. CDFA is a bipartisan organization that supports sound public policy and the leadership involved in making important decisions affecting development finance.
Each year CDFA produces a Policy Agenda and works with legislators and federal officials to advance these initiatives. Additionally, CDFA holds briefings, trainings, and advises legislative and federal stakeholders on numerous topics.
Want regular updates on legislative and federal affairs? CDFA publishes the highly popular
Legislative & Federal Affairs Update each month. This free newsletter features development finance news, resources, case studies, and the latest from Capitol Hill and the federal government.
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-Latest Developments
CDFA Calls on Congress to Make Disaster Recovery Bonds Permanent
In the aftermath of the Norfolk Southern train derailment, the residents of East Palestine, OH are in dire need of assistance to begin the clean-up and rebuilding process. There is ample precedent for Congress to act.
Over the past 22 years, Congress has passed bipartisan legislation, under the leadership of both Democrats and Republicans, to create special tax-exempt bond categories to provide federal assistance to aid disaster-affected states in recovery and promote economic development. For example, in the aftermath of September 11th, Congress created Liberty Bonds. After Hurricane Katrina and Hurricane Ike devastated Gulf states in 2005 and 2008, Congress responded with Gulf Opportunity Zone Bonds and Hurricane Ike Disaster Area Bonds. Finally, Congress created Midwestern Disaster Recovery Bonds after severe flooding along the Mississippi River.
These bond programs were extremely impactful, but each required a special act of Congress, and it took months before capital became available. The delay left communities without the immediate resources needed to begin recovery. More recently, gridlock in Congress has further stymied the creation of any new bond categories, leaving no additional tax-exempt financing for communities impacted by natural or man-made disasters.
With the expectation that such disasters will occur in the future, Congress should act immediately to pass legislation to make Disaster Recovery Bonds a permanent category of private activity bonds. This action would benefit the states and territories affected by such disasters and help to prepare for future catastrophes.
CDFA sends its heartfelt sympathies to the people of East Palestine as they work to rebuild their community. Congress must act immediately and enact legislation to help them in this mighty endeavor.
CDFA stands ready to assist Congress with this necessary effort so that disaster-affected communities can begin recovery efforts.
-CDFA Policy Agenda
Overview
The 118th Congress presents a tremendous opportunity for the advancement of essential development finance legislation as the new Congress contains both dynamic politicians with which to partner and new leadership in the House of Representatives. CDFA is committed to fulfilling numerous policy objectives, including the improvement of tax-exempt bonds, passing technical corrections for the SSBCI program, and securing continued support for critical federal financing programs. This agenda is borne out of CDFA’s 41 years as a leader in the development finance industry. This agenda identifies critical policy areas crafted to address market-based access to capital challenges. CDFA is prepared to assist with the implementation of the following policy priorities:
- Priority 1: Reforming 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: Creating 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.
- Priority 3: State Small Business Credit Initiative Technical Fix - CDFA proposes a technical correction to extend program authorization to 2030 to ensure that all jurisdictions can fully execute their approved plans to strengthen and grow small businesses across the United States.
- Priority 4: Bolster Economic Development Financing Tools - CDFA supports restoring local economies, preserving small businesses, investing in underserved communities, and protecting the environment.
View CDFA's Full Policy Agenda
-Federal News
-Legislative News
-Legislation Tracker
CDFA tracks economic development legislation in Congress. Below you can see legislation relevant to development finance in the current Congress. Click on a legislative item to see a brief summary and learn more about it.
-H.R. 490 - The Federal Infrastrucure Bank Act of 2023
View H.R. 490 on Congress.gov
Congressional Leaders Introduce Bipartisan Innovative Plan for Infrastructure Investment
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- The Federal Infrastructure Bank will provide loans and loan guarantees specifically targeted to infrastructure projects while being prohibited from engaging in other types of banking activities. Under the legislation, project eligibility is broad as no federal taxpayer dollars are at stake and can help finance surface transportation projects, ports, electric grid security, broadband connectivity the revitalization of Main Street USA, and more.
- The Bank encourages private investment for initial capitalization through tax incentives for those investments during the first three years of operation. This approach differs from prior Infrastructure Bank proposals as it will be entirely capitalized by private investment. Infrastructure banks have successfully complemented existing funding programs across the world, including US state infrastructure banks. If enacted, the bank will support industries and projects critical to the structure, growth, and resurgence of the US economy.
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-H.R. 1407 - The FLOW Act of 2023
-H.R. 1837 - The Investing in Our Communities Act
-S. 639 - A Bill to Improve the Historic Rehabilitation Tax Credit
View S. 639 on Congress.gov
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- Increases the rehabilitation tax credit and modifies certain requirements for the credit.
- Increases the rate of the credit to 30% for small projects (rehabilitation expenditures not exceeding $3.75 million) and caps the credit for such projects at $750,000 for all taxable years.
- Expands the types of buildings eligible for rehabilitation by decreasing the rehabilitation threshold from 100% to 50% of project expenses. It also eliminates the basis adjustment requirement for the credit and modifies rules relating to the eligibility of tax-exempt use property for the credit.
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-S. 649 - The Hydrogen Infrastructure Finance and Innovation Act
View S. 649 on Congress.gov
Senators Chris Coons (D-DE) and John Cornyn (R-TX) Introduce Hydrogen Infrastructure Initiative
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- The Hydrogen Infrastructure Finance and Innovation Act would create a pilot financing program to provide grants and flexible, low-interest loans for retrofitted or new hydrogen transportation infrastructure, storage projects, and refueling stations.
- The program is modeled after the Transportation Infrastructure Finance and Innovation Act and the Water Infrastructure Finance and Innovation Act programs for highway and water infrastructure and builds on similar goals as the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act program.
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-S. 726 - The FLOW Act of 2023