- Details
- By Brian Edwards
- Finance
The Office of Management and Budget has cleared $289 million in fiscal year 2025 funding for the U.S. Treasury’s Community Development Financial Institutions Fund, including $28 million for the Native American CDFI Assistance Program, according to federal budget documents.
The funds were apportioned April 8, making the full FY2025 appropriation available to Treasury for obligation. The total includes $188 million for the CDFI Program, $40 million for the Bank Enterprise Award Program, $28 million for Native financial and technical assistance, $24 million for the Healthy Food Financing Initiative, and $9 million for the Small Dollar Loan Program.
Treasury has not announced a timeline for issuing FY2025 NACA Financial Assistance awards or disbursing funds.
The action follows months of uncertainty over FY2025 funding for Native CDFIs. In September, Treasury awarded $1.95 million in NACA technical assistance grants to 10 Native CDFIs — about half of the $3.72 million awarded the prior year — while indicating that additional awards would be subject to funding availability, according to prior Tribal Business News reporting. At the time, tribal advocates warned that most of the $28 million appropriated for NACA — about $24 million — could be withheld without further action by federal agencies.
The move follows coordinated advocacy in recent weeks by the Native CDFI Network, tribal leaders and Native-serving organizations, including a March letter signed by more than 100 Native CDFIs, tribal nations and partners calling on the administration to release FY2025 funding and uphold federal trust and treaty responsibilities.
The funding was cleared ahead of House and Senate hearings this week where Office of Management and Budget Director Russell Vought faced bipartisan scrutiny over delays in distributing congressionally appropriated funds, including questions tied to the CDFI Fund and other community development programs. Lawmakers said funding had not been released months after appropriation, while Vought said the administration had not impounded funds.
Separately, the Treasury announced plans to issue rules governing CDFI Fund awards under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The agency said the rules are intended to ensure compliance with federal law and limit eligibility for certain federally funded benefits.
Treasury also said it will add provisions to CDFI Fund agreements requiring certified CDFIs to maintain policies and procedures demonstrating compliance with federal anti-discrimination laws. Under the proposed changes, CDFIs could face remedies for noncompliance, including potential decertification, termination of remaining funds or recapture of prior awards, Treasury said.
The agency said it will issue a notice of proposed rulemaking outlining the changes.
