WASHINGTON–The Treasury Department has released new conditions and requirements for awards issued through the Community Development Financial Institutions (CDFI) Fund and America’s Credit Unions is calling for clear guidance and full restoration of the funding that has to date been eliminated by the Trump administration.
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
No Need to Reapply
America’s Credit Unions noted that credit unions and other financial institutions that previously filed an application with climate or DEI activities do not need to withdraw or reapply.
“Steps 1–3 of scoring are unchanged,” America’s Credit Unions said. “If an application has advanced to Step 4, the CDFI Fund will contact the financial institution and give them a chance to update their submission to reflect the amendments.”
Those updates are due by 11:59 p.m. ET on Oct. 27, 2025.
End of Delays Urged
“Representing the largest portion of CDFIs, credit unions make significant contributions to their communities through CDFI Fund awards,” America’s Credit Unions President and CEO Jim Nussle said in a statement. “The opportunities the fund creates for small businesses, homeownership, and community development are critically important to strengthening local economies. As new requirements are added, America’s Credit Unions urges clear guidance and timely processing to avoid any delays or reductions in service. We are steadfast in calling for transparency, full funding, and clarity from the CDFI Fund to ensure it operates efficiently.”
As the CU Daily has reported, and as America’s Credit Unions noted, 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 wrote to Office of Management and Budget (OMB) Director Russ Vought earlier this month urging it to take action.
