U.S. Department of the Treasury04/09 22:33 UTC
Treasury Moves to Prevent Abuse of Community Development Financial Institutions (CDFI) Fund Programs
U.S. Department of the Treasury Office of Public Affairs Press Release: April 9 , 2026 Contact: Treasury Public Affairs, Press@treasury.gov Treasury Moves to Prevent Abuse of Community Development Financial Institutions (CDFI) Fund Programs WASHINGTON – The U.S. Department of the Treasury announced today that the CDFI Fund will issue rules concerning the treatment of CDFI Fund awards under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). The rules are intended to ensure compliance with federal law and that taxpayer-funded federal public benefits are not diverted to subsidize illegal aliens. Treasury also announced reforms to ensure certified CDFIs comply with federal anti-discrimination laws. “Under President Trump’s leadership, we are enforcing the law and preventing the abuse and misuse of CDFI Fund grants intended solely for American citizens and lawful residents,” said Secretary of the Treasury Scott Bessent . “Treasury will continue to use its authority to prevent waste, fraud, and abuse in all forms, including by safeguarding taxpayer money awarded by the CDFI Fund.” Treasury will issue a forthcoming notice of proposed rulemaking to clarify that certain benefits are “federal public benefits” within the meaning of PRWORA. Accordingly, illegal aliens and other non-qualified aliens would not be eligible to receive these benefits funded by the American taxpayer. In addition, Treasury is adding a new provision to relevant CDFI Fund agreements to ensure certified CDFIs do not engage in practices that violate federal anti-discrimination laws, including providing employment or financial preferences or set-asides based on race, ethnicity, or sex in a manner inconsistent with federal 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. This provision will ensure certified CDFIs’ compliance with federal anti-discrimination laws and root out unlawful discrimination. In the event of noncompliance with CDFI Fund agreements, the CDFI Fund intends to vigorously exercise its remedies, to the extent permitted by law, including potentially decertification of CDFI status, termination of any unused funds, and recapture of past award funds. ###
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SEC EDGAR Filings04/09 21:28 UTC
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SEC EDGAR Filings04/09 21:28 UTC
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