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, America's Credit Unions reported.
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, ACU said.
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 said it has strongly advocated for both after being zeroed out in the White House’s FY26 budget proposal.
The CDFI Fund awards grants to assist affordable housing, homeownership, small business growth, and more through certified CDFIs. Credit unions make up the largest group of certified CDFIs with 444 of 1,375 as of August 12, ACU noted.