Business Group Sues Treasury Over $289 Million In CDFI Funds
By CU Today Staff —
WASHINGTON—A business advocacy group representing community lenders has sued the Trump Administration in an effort to force the Treasury Department to distribute $289 million in congressionally appropriated Community Development Financial Institutions Fund money before it expires Sept. 30.
The Freedom Economy Business Association filed the lawsuit Monday in U.S. District Court for the District of Columbia, alleging Treasury unlawfully failed to obligate and distribute fiscal 2025 funding approved by Congress, Reuters reported.
Treasury announced CDFI awards Sept. 15, but according to the lawsuit, it had not identified recipients or obligated the money when the complaint was filed. Freedom Economy is seeking a temporary restraining order and preliminary injunction and wants the court to compel Treasury to release the fiscal 2025 funds before they lapse. The group is also seeking action on another $289 million Congress appropriated for fiscal 2026. U.S. District Judge Carl J. Nichols ordered the parties to confer and submit a joint status report addressing a briefing schedule and possible hearing on the emergency motion.
The case is the second lawsuit over the withheld CDFI funding. CAMEO Network and Inclusive Action for the City sued the Administration in August, arguing that withholding the congressionally appropriated money was unlawful. After Treasury's Sept. 15 announcement, those organizations said the government still had not committed to distributing the entire $289 million before the deadline.
Originally reported by CU Today.