Treasury Proposed New CDFI Fund Reporting Rules

The proposal would remove race and ethnicity as criteria for defining targeted market populations for community funding.

Updated on Oct. 1, 2026 in Economic Policy

Bold flat-color editorial illustration in navy and cream with red accents, depicting a series of geometric architectural columns. — The Treasury Department proposed new reporting rules for Community Development Financial Institutions, effectively removing specific race and ethnicity criteria for targeted market populations. AI Illustration. Upload story photo >

Live Poll

Should government financial aid programs use race as a criteria for targeting specific populations?

The Treasury Department released a notice in the Federal Register proposing updates to how Community Development Financial Institution (CDFI) funds collect information. These changes remove specific racial and ethnic groups from the eligibility criteria for targeted market populations.

Why it matters

The administration aims to shift how federal funding is distributed by removing race-based definitions from the criteria, which were previously described as promoting harmful ideologies. This adjustment to information collection rules could impact how future CDFI investment flows are categorized and managed.

The Treasury Department obligated $289 million in congressionally approved funding for the CDFI Fund after it was previously withheld by the Office of Management and Budget. The total universe of funding and eligibility remains subject to public review.

The players

Treasury Department

The federal agency responsible for economic policy and the management of government funding programs.

Office of Management and Budget

The executive office that oversees the implementation of federal budget priorities and funding disbursements.

The details

The Treasury Department issued a notice outlining a new information collection regime that redefines how organizations qualify as targeted market populations. By eliminating African American, Hispanic, Pacific Islander, Filipino, and Vietnamese categories, the rule mandates a shift in how institutions report data. This change directly alters the qualifying factors that determine access to financial support within the community-based lending infrastructure.

September 30, 2026: The Treasury Department obligated the $289 million in funding.
November 30, 2026: The public comment period for the proposed rule changes closes.

Money Landscape

This move represents a departure from previous administrative approaches regarding the oversight of federally supported community development finance. It follows a period where the Office of Management and Budget had previously held back $289 million in funding.

These changes could alter how community lending institutions in your area qualify for and distribute federal funding. If you rely on CDFI-backed programs, consult with a financial advisor to understand how these updated eligibility standards may affect local credit and development resources.

The takeaway

The Treasury is moving to remove race and ethnicity from the eligibility metrics used to direct federal community development capital. Interested parties should track the Federal Register for final rulings after the comment period closes on November 30, 2026.