WASHINGTON--The Treasury Department has submitted a proposal to the Office of Management and Budget (OMB) that would add a requirement to certain applications for Community Development Financial Institutions (CDFI) Fund awards. The additional form would 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. 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, America's Credit Unions warned.
"Nearly $290 million in congressionally appropriated CDFI Fund money remains withheld by OMB, with awards allocations already overdue. The House Appropriations Committee advanced the fiscal year 2026 Financial Services and General Government bill last week, which contains funding for the CDFI Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF). America’s Credit Unions has strongly advocated for both after being zeroed out in the White House’s FY26 budget proposal," America's Credit Unions noted.
ACU, AACUL, and all leagues sent a letter to OMB, highlighting their concerns about adding regulatory burdens to the CDFI process that could delay the disbursement of funds.
The groups urged the OMB to ensure that the Community Development Financial Institutions (CDFI) Fund continues to expand access to capital and technical assistance in underserved areas.
"America’s Credit Unions is the voice of consumers’ best option for financial services: credit unions. We advocate for policies that allow the industry to effectively meet the needs of their over 142 million members nationwide," the letter states. "We appreciate Treasury’s and the Office of Management and Budget's efforts to identify a path for disbursing congressionally appropriated CDFI Fund awards this year. We understand Treasury has proposed, and OMB is reviewing, a supplemental application for Financial Assistance awards. While we recognize the intent to align program administration with current policy priorities, we are concerned that introducing a new supplemental application at this late stage could further slow disbursements, create uncertainty for applicants, and delay capital reaching the communities that need it most.
"Many credit-union CDFIs have already invested significant resources to meet evolving application requirements; several also report that changes implemented during the prior administration added complexity without clear programmatic benefit. Our strong preference is to minimize additional pre-award requirements so that awards can be made expeditiously and efficiently...
"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 concludes.