Treasury Moves to Prevent Abuse of Community Development Financial Institutions Fund Programs | U.S. Department of the Treasury

https://home.treasury.gov/news/press-releases/sb0473
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2026-04-27 19:14:46 · pdonofrio@vixio.com
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TITLE: U.S. Department of the Treasury Initiates Review of Community Development Financial Institutions Fund Programs BODY: On April 27, 2026, the U.S. Department of the Treasury announced it has initiated a comprehensive review of certified Community Development Financial Institutions (CDFIs) to identify potential violations of applicable law and CDFI requirements. The review aims to ensure that CDFIs receiving federal assistance act as proper stewards of taxpayer funds. Treasury Secretary Scott Bessent stated that while CDFIs play a critical role in expanding access to capital in underserved communities, those engaging in predatory practices that take advantage of the communities they are intended to serve will be reviewed and held accountable where appropriate. The review forms part of Treasury's broader efforts to strengthen oversight of federal grant programs, promote accountability, and prevent abuse of CDFI Fund assistance. As part of the review, Treasury is assessing whether CDFIs are complying with applicable legal requirements and the terms of CDFI Fund assistance agreements. The assessment will determine whether CDFIs have violated applicable law or CDFI requirements. Treasury has indicated it will take action consistent with applicable law and program requirements where violations are identified. CDFIs are financial institutions that provide credit and financial services to underserved populations and communities. The CDFI Fund, administered by Treasury, provides grants and loans to support these institutions. This review represents an enforcement action aimed at ensuring accountability among certified CDFIs and protecting federal resources from misuse or predatory practices.
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