Treasury Proposes Anti-Discrimination Rules for CDFI Fund Awards
Summary
The ABA Banking Journal reports that the U.S. Treasury Department has proposed new anti-discrimination requirements for applicants to the CDFI Fund, including citizenship verification and fair lending documentation mandates for grant, loan, and bond guarantee programs. Banks, credit unions, and other CDFIs seeking federal funding must monitor the proposed changes and prepare comment submissions. The Treasury consultation period closes May 1, 2026.
What changed
Treasury has issued a consultation proposing new anti-discrimination requirements for CDFI Fund award applicants. The proposed rules would require entities seeking grants, loans, or bond guarantees through the CDFI Fund to implement citizenship verification processes and demonstrate anti-discrimination compliance. The consultation is open for public comment through May 1, 2026.
Banks, credit unions, and other financial institutions that receive or seek CDFI Fund awards should monitor these developments and assess whether existing compliance programs meet the proposed requirements. Failure to comply with CDFI Fund requirements could affect eligibility for federal economic development funding.
What to do next
- Review Treasury's proposed anti-discrimination requirements for CDFI Fund applicants
- Assess current compliance programs for citizenship verification and fair lending documentation
- Submit comments to Treasury before the May 1, 2026 deadline
Archived snapshot
Apr 10, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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Treasury issues new citizenship, anti-discrimination requirements for CDFI Fund awards
April 9, 2026 Reading Time: 2 mins read The Treasury Department today proposed new rules to prevent the Community Development Financial Institutiona Fund awards from being used to support individuals in the U.S. illegally. It also announced that CDFIs will be required to adopt policies aligning with the Trump administration’s anti-discrimination priorities, and the fund will review those policies for compliance.
According to a Treasury Department statement, the proposed rulemaking will state that certain benefits are “federal public benefits” under the Personal Responsibility and Work Opportunity Reconciliation Act. “Accordingly, illegal aliens and other non-qualified aliens would not be eligible to receive these benefits funded by the American taxpayers,” it said.
The Treasury Department also announced that it is adding a new provision to CDFI Fund agreements to ensure certified CDFIs do not engage in practices that violate federal anti-discrimination laws.
“Certified CDFIs will be required to adopt, implement and maintain policies and procedures reasonably designed to ensure compliance with these requirements, certify annually as to the existence and administration of those policies and procedures, and make them available for review upon request by the CDFI Fund,” it said.
Noncompliance with the revised agreements will lead to the CDFI Fund “to vigorously exercise its remedies,” including possible termination of CDFI status, the Treasury Department said.
The proposed changes come after the Treasury Department announced last year that it would modify the fund’s New Market Tax Credits program allocations to ensure compliance with federal anti-discrimination laws. The department also said it would increase monitoring of award recipients.
OMB to release FY2025 funds
In related news, the Office of Management and Budget plans to release $289 million in fiscal year 2025 funds to the CDFI Fund, according to the Community Development Bankers Association. The move comes after the White House released a proposed budget for fiscal year 2027 that calls on Congress to trim the CDFI Fund’s budget by $204.5 million, or roughly two-thirds of the program’s current budget.
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