CDFI Awards Move Forward: What Credit Union Executives Need to Know

Posted by Erin Hall on September 16, 2026

After prolonged uncertainty, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has announced the remaining fiscal year (FY) 2025 Community Development Financial Institutions (CDFI) and Native American CDFI Assistance (NACA) awards, along with FY 2026 Bank Enterprise Award (BEA) and Small Dollar Loan (SDL) awards.

For credit union executives, this is welcome news. The programs support responsible lending, operational capacity, and service to underserved communities. The timing is critical because the FY 2025 appropriations were set to expire September 30, 2026.

What Treasury announced

The awards cover four programs. CDFI Program Financial Assistance supports lending, reserves, financial services, and development services, while Technical Assistance builds institutional capacity. The NACA Program provides comparable support to organizations serving Native American, Alaska Native, and Native Hawaiian communities.

The SDL Program helps Certified CDFIs offer affordable alternatives to high-cost small-dollar credit. The BEA Program rewards eligible banks for increased investment in CDFIs and severely distressed communities.

Recipients will receive official notices through the CDFI Fund Awards Management Information System (AMIS) by September 30, 2026. Sample Assistance Agreement terms are expected in the coming weeks. Treasury did not identify recipients or total award amounts.

Why this matters now

The announcement follows significant disruption, including a directive to reduce CDFI Fund activities, proposed elimination of discretionary awards, reversed staff reductions, and more than a year of delayed FY 2025 funding. The Office of Management and Budget released the $289 million appropriation in April 2026, allowing awards to proceed before the funds expired.

Treasury is also signaling stronger oversight. Awardees should expect compliance reviews, monitoring of spending and performance, and scrutiny under applicable executive orders and federal anti-discrimination requirements. Material noncompliance could lead to terminated funding, recapture, decertification, or other remedies.

Advocacy remains essential

GoWest Credit Union Association, America’s Credit Unions, and state leagues urged Treasury and the Office of Management and Budget to release the appropriated funds. GoWest continues to advocate for full CDFI Fund funding, support for the National Credit Union Administration’s Community Development Revolving Loan Fund, and clear, workable award conditions.

These awards are an important step, but debate over federal community development programs continues. Credit union leaders should stay engaged as Congress considers FY 2027 funding and Treasury finalizes award terms.

GoWest will continue to monitor award conditions, disbursement timing, and appropriations. If your credit union has questions or encounters challenges implementing an award, please reach out so we can help identify issues and inform our advocacy.

Posted in Advocacy on the Move.