New CDFI Fund conditions coming later this week

Treasury is attaching new conditions and requirements to awards issued through its Community Development Financial Institutions (CDFI) Fund. The agency outlined the changes in its call attended by America’s Credit Unions Tuesday. A Notice of Funds Availability (NOFA) will publish later this week, removing climate financing and diversity, equity, and inclusion (DEI) from the list of permissible activities.  

When these changes are finalized, credit unions that previously filed an application with climate or DEI activities will have to file a supplemental application within 30 days to attest that they are not using CDFI grant funds for these purposes.

Treasury has not released nearly $290 million in FY2025 CDFI funds. America’s Credit Unions, 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 calling on Treasury and OMB to work quickly to ensure that CDFIs have all necessary guidance and avoid any delays to award announcements or reduction in award amounts.