WASHINGTON–A coalition of credit union associations has sent a letter to the Office of Management Budget (OMB) over A Treasury proposal that would add a requirement to certain applications for Community Development Financial Institutions (CDFI) Fund awards to require applicants to disclose whether funds would be used for diversity, equity, inclusion (DEI), or climate purposes.
“While this proposal has been submitted to OMB, it has not yet been approved,” said Americas Credit Unions. “If implemented, this new requirement could delay the release of awards and create uncertainty for applicants, including credit unions, while raising questions about how Treasury will treat these disclosures in the allocation of funding.
“CDFI Fund programs deliver an exceptional return on investment, bringing in more than $12 of private capital for every federal dollar,” reads the letter, which was also signed the American Association of Credit Union Leagues and all state leagues.
Demand at All-Time High
The letter notes that demand for CDFI funds, which the Trump administration has attempted to eliminate, is at a historic high while “CDFIs continue to manage credit risk effectively.”
“If a supplemental application is deemed necessary, we respectfully request that Treasury and OMB work quickly to ensure that institutions have the guidance necessary to comply and avoid any steps that would delay award announcements or reduce award amounts relative to the appropriations and program scoring already completed,” the letter states.
House Approves Funds
As the CU Daily has reported, in July the House Financial Services and General Government Subcommittee approved a bill proposing $276.6 million for the CDFI Fund. While this is higher than the president’s budget request, it represents a $47.4 million cut from the FY 2025 appropriation of $324 million.
