WASHINGTON—In response to an Office of Management and Budget (OMB) proposal to add a requirement to certain applications for CDFI Fund awards requiring disclosure of whether funds would be used for DEI or climate purposes, America’s Credit Unions and the state leagues have sent a letter to Treasury saying the plan raises numerous questions and issues.
As CU Daily reported earlier, nearly $290 million in congressionally appropriated CDFI Fund money remains withheld by OMB, with award allocations already overdue. The House Appropriations Committee advanced the fiscal year 2026 Financial Services and General Government bill last week, which contains funding for the CDFI Fund and NCUA’s Community Development Revolving Loan Fund.
Risk of Slowing Disbursements
In their letter, America’s Credit Unions and the leagues wrote, “While we recognize the intent to align program administration with current policy priorities, we are concerned that introducing a new supplemental application at this late stage could further slow disbursements, create uncertainty for applicants, and delay capital reaching the communities that need it most. Many credit-union CDFIs have already invested significant resources to meet evolving application requirements; several also report that changes implemented during the prior administration added complexity without clear programmatic benefit. Our strong preference is to minimize additional pre-award requirements so that awards can be made expeditiously and efficiently.”
The full letter can be found here.
