SAN FRANCISCO — A federal government lawyer has told a judge that nearly $289 million in funding for community development lenders had been obligated, according to attorneys for two organizations that sued to prevent the money from expiring at the end of September.
But the obligation of the funds does not necessariy mean they have been paid.
CAMEO Network and Inclusive Action for the City filed the lawsuit in August against the Treasury Department and the Office of Management and Budget. The groups contend the administration unlawfully withheld money Congress appropriated for Community Development Financial Institutions, or CDFIs, which provide financing in communities underserved by traditional lenders.
As the CU Daily has also been reporting, credit unions, more than 400 of which are CDFIs, have also been battling with the administration to have CDFI funds awarded.
The Trump Administration has repeatedly sought to all but eliminate the CDFI Fund by either not allocating funds, not paying funds that Congress has restored, or eliminating Treasury Dept. personnel responsible for the program.
Obligated, Not Necessarily Paid
The administration’s lawyer said the funds were obligated Sept. 23, a day before a hearing in U.S. District Court for the Northern District of California, according to Democracy Forward, which represents the plaintiffs.
In a sworn declaration filed before the hearing, CDFI Fund Director Chris Miller said he expected $288,992,757 of the $289 million at issue to be obligated by the close of business Sept. 23, Democracy Forward said. The statement that the money has been obligated does not establish that it has been paid to recipients.
Treasury had announced awards for several CDFI Fund programs on Sept. 15. It said the awards used congressional appropriations that would expire Sept. 30 and that recipients would receive official notifications by that date.
CU Strategic Planning Urges Fund to Get Dollars into Hands
“CU Strategic Planning is pleased to see the FY 2025 funds making their way to CDFI credit unions and urges the CDFI Fund to continue its work to now get award agreements and dollars in hand to winners,” Micheal Bell, chief experience officer with CU Strategic Planning told the CU Daily. “We are hopeful that the NOFA for FY 2026 funding is released quickly so that CDFI credit unions can see a more normalized process and timeframe for FA/TA/SDL awards.”
CU Strategic Planning ssists credit unions with CDFI certification, grant writing, and compliance reporting, and has helped clients secure more than $1 billion in US Treasury awards, according to the cmpany.
Sworn Statement Sought
The plaintiffs are seeking a sworn statement from a Treasury official confirming how the money was obligated. Democracy Forward said the judge directed the parties to discuss the statement’s contents and scheduled another hearing for Sept. 29. The broader lawsuit remains pending; the plaintiffs also challenge the administration’s handling of more than $1 billion in CDFI funding from other fiscal years, including 2026. Those are the plaintiffs’ allegations, not findings by the court.
“From the beginning, our goal with this lawsuit was to prompt a quick distribution of funds so that CDFIs could get back to work in their communities,” CAMEO Network CEO Carolina Martinez said in a statement.
