The US Treasury Department handed out its remaining 2024 funds for community development financial institutions as the industry waits for 2025 funds to be released by the White House Office of Management and Budget.
A group of 56 community development financial institutions (CDFIs) received funding from the Treasury's CDFI Fund using fiscal year 2024 money for total grants of almost $8.8 million, according to an announcement from the agency. These are the first CDFI Fund awards announced this year, according to the announcement.
"This represents Treasury's support for institutions that support growth in rural and other underserved markets," the CDFI Fund wrote in the release.
CDFI funding has been up in the air since a March executive order from President Donald Trump seeking to restrict the Treasury's CDFI fund. Following these rewards, any future payments to CDFIs must come from 2025 funds, as 2024 funds expired Sept. 30, the end of the fiscal year.
The CDFI industry is pushing for the White House Office of Management and Budget to release 2025 funds to the Treasury for disbursement.
In the Sept. 30 release, the CDFI Fund said it plans to award future payments this winter, "subject to funding availability."
While the Community Development Bankers Association awaits the fiscal year 2025 awards, it welcomed the fiscal year 2024 announcement.
"We appreciate Treasury's work to ensure the funds are applied to the purpose Congress intended when they appropriated them, which was enhancing economic opportunity, and it really reflects well on Treasury's commitment to the CDFI program," Brian Blake, chief public policy officer for the Community Development Bankers Association and Partners for the Common Good, said in an interview.
