Administration Says $289M In CDFI Funding Has Been Obligated
By CU Today Staff —
WASHINGTON—The Trump Administration told a federal judge Monday that nearly $289 million in congressionally approved funding for Community Development Financial Institutions has now been fully obligated, potentially undercutting an emergency lawsuit seeking to force the government to move the money before it expires Sept. 30, according to Law360.
The representation came in a case filed Sept. 21 by the Freedom Economy Business Association against the Treasury Department, Treasury Secretary Scott Bessent, the CDFI Fund and its director, Chris Miller. The group had asked U.S. District Judge Carl J. Nichols in Washington to issue a temporary restraining order and preliminary injunction requiring the government to act on the fiscal 2025 money before the end of the fiscal year. Reuters reported when the suit was filed that Treasury had announced awards Sept. 15 but, according to the lawsuit, had not yet identified recipients or obligated the money.
The Administration's assertion that the money is now obligated is significant because obligation generally commits the funds before the appropriation expires, although it does not necessarily mean the money has already been paid to CDFI recipients. A separate lawsuit brought by CAMEO Network and Inclusive Action for the City produced a similar development last week: the government told a California federal court that approximately $288.99 million had been obligated Sept. 23, according to Democracy Forward, which represents the plaintiffs in that case.
Freedom Economy's lawsuit had argued the delay threatened CDFIs that provide financing for small businesses, affordable housing, health clinics and other projects in underserved communities. The group is also seeking action on another $289 million appropriated for fiscal 2026, Reuters reported.
Originally reported by CU Today.