WASHINGTON– Numerous changes have been announced by the Trump administration recently related to the CDFI Fund, but the biggest question of all remains unanswered—will Congress and the OMB actually disburse the funds?
As the CU Daily reported [here], the Treasury Department has released new conditions and requirements for awards issued through the CDFI Fund.
As the CU Daily reported here, the Treasury Department has released new conditions and requirements for awards issued through the CDFI Fund.
According to the Notice of Funds Availability (NOFA), the changes include:
- Removal of climate-focused financing and diversity, equity, and inclusion (DEI) eligible markets from the list of eligible activities. Eligible markets will now be based on geographic and income-based factors with eligibility for Native American, Native Hawaiian, Alaska Native, or Persons with Disabilities remaining.
- A redefinition of “Healthy Foods” for purposes of the Healthy Foods Financing Initiative—Financial Assistance program to align it with the policies of the current administration
But Treasury has not released nearly $290 million in FY2025 CDFI funds. The trade group, along with the American Association of Credit Union Leagues, and all state leagues, have written to Office of Management and Budget (OMB) Director Russ Vought earlier this month urging it to take action.
Not Behind 8 Ball
James Akin, head of regulatory advocacy with America’s Credit Unions, said the trade group was pleased to see the changes will not require credit unions that have filed applications for CDFI funds to proactively reach out to Treasury, but instead Treasury will be providing the opportunity to update applications.
But all of that, in the end, depends on the funds being disbursed to award winners. Akin noted the process is now at stage 4, the award level, and it’s up to OMB to provide those funds to all the institutions selected.
“We’re not behind the eight ball,” Akin said, explaining that in several prior years funds were disbursed on a schedule similar to what’s being seen in 2025.
“We’re obviously going to keep the momentum moving to get these funds out, but we expect to see them in the next few months,” he said. “I think on things like technical assistance (grants), where the (Notice of Funding Availability—NOFA) will not necessarily be applied as much, you will see that being disbursed much sooner.”
Changing Criteria
Akin said he is not concerned credit unions that have been chosen for grants will have those awards retracted due to the broad, anti-DEI position of the Trump administration.
As an example, he said an application may have been selected as the result of certain criteria, but that other criteria can be substituted for the same market, such as income level.
