Protecting Community Capital Freedom Economy's lawsuit confirms timeline for when CDFIs can expect the $289 million in FY2025 funding.
Community Development Financial Institutions — or CDFIs — help capital reach places traditional financial institutions often fail to serve.
They finance small businesses and entrepreneurs. They support affordable housing, health clinics, child-care centers and other community needs. Their federal funding can also help attract additional private and philanthropic investment.
On September 29, a federal district court confirmed that nearly $289 million in FY2025 CDFI Program funding has been obligated and will not lapse after the September 30 fiscal-year deadline.
On October 14, in a joint status report filed with the court, the government represented that the CDFI Fund anticipates issuing proposed Assistance Agreements to successful applicants in early November 2026, and typically disburses the initial payment no later than 10 business days after an awardee executes its agreement.
Freedom Economy will continue to monitor the government's progress and pursue the underlying case to ensure the remainder of the CDFI process moves forward consistent with the law.
At a Glance
Funding Protected
The Case
Freedom Economy Business Association v. U.S. Department of the Treasury, et al.
March 2025:
Congress approved funding for the CDFI Fund for FY2025.
CDFIs applied for FY2025 funding. Eighteen months later, the process remains unfinished as the September 30 deadline approaches.
February 3, 2026:
Congress approved funding for the CDFI Fund for FY2026.
September 15, 2026:
Treasury announced awards, but as of Freedom Economy's filing, the agreements needed to commit the FY2025 program funding had not been completed.
September 21, 2026:
Freedom Economy filed a federal complaint and motion for emergency relief seeking to ensure nearly $289 million in FY2025 CDFI funding would be obligated and would not lapse after September 30.
September 28, 2026:
The Court heard oral arguments on Freedom Economy’s request for emergency relief and directed the parties to meet and confer regarding Freedom Economy’s concerns about whether the funds would remain available beyond September 30.
September 29, 2026:
The Court issued an oral order confirming that the FY2025 CDFI funding has been obligated and will not lapse after September 30. Because Freedom Economy received the immediate relief it sought, its emergency motion is no longer necessary. The Court retained jurisdiction, and Freedom Economy’s underlying complaint continues.
October 14, 2026:
The parties filed a joint status report. The government represented that the CDFI Fund anticipates issuing proposed Assistance Agreements to successful applicants in early November 2026, and typically disburses the initial payment no later than 10 business days after an awardee executes its agreement. The parties also proposed a summary judgment briefing schedule.
December 15, 2026:
The government's motion for summary judgment is due.
January 25, 2027:
Summary judgment briefing is scheduled to conclude.
Congress made the decision. CDFIs followed the process. Freedom Economy is asking that the process be completed.
Why This Matters
The government has now put a timeline on the record, but the work is not finished. CDFIs are waiting on award agreements expected in early November, and Freedom Economy will continue working to ensure the terms and conditions governing these funds are consistent with the law.
CDFIs help fill gaps in the financial system by bringing capital and financial services to entrepreneurs, small businesses and communities that often have fewer options for affordable financing.
When that capital is delayed, the effects can move through an entire investment ecosystem.
Small businesses wait for loans. Housing and community projects wait for financing. CDFIs have less certainty about the capital they can deploy. Private and philanthropic investors have less certainty about what their own investments can leverage.
Capital depends on confidence — and businesses and investors need to know that the rules they rely on will be followed.
In the News
Trump administration sued over withheld federal grants for US community lenders.
Trump Admin Sued Over $289M In Soon-To-Lapse CDFI Funds
Morning Money - Congress’ vanishing debt discipline
Black businesses caught in limbo as lawsuit challenges Trump administration over $289M in funding
Treasury Sued Again on Community Lender Funds as Deadline Looms
You May Not Be Familiar With the Term ‘CDFI,’ But Black Communities Will Feel the Impact if $289 Million in Investment Disappears
Community lender group sues U.S. Treasury over delayed federal grants
The Trump Administration Has Been Sued More Than 750 Times. Track These Cases.
For Media
Reporting on the case or looking for background on CDFIs?
Access the materials below or contact Freedom Economy to speak with a spokesperson.