CDFI Fund Opens FY25 Financial Assistance Supplemental Application and Other Program Status Updates 

Lily Jin, Associate, Public Policy, OFN

September 25, 2025 – 

Treasury signals progress on moving CDFI Fund Financial Assistance (FA) Awards forward.

Read time: 4 minutes

This week, a group of CDFI industry leaders, including OFN leadership, was briefed by U.S. Department of Treasury personnel regarding updates around the timeline for Fiscal Year (FY) 2025 CDFI Fund Financial Assistance (FA) Awards and other programs. The news follows a swell of CDFI engagement with Members of Congress who have voiced continued concern over the delays in disbursement of FY25 funds. Below are the latest updates.

New Supplemental Application for FY25 FA Awards

After months of back and forth between the agencies and amid ongoing advocacy from the CDFI industry, the Office of Management and Budget (OMB) approved the Treasury Department’s FA supplemental application. The Notice of Funding Availability (NOFA) was published in the Federal Register today. Only CDFIs that have already applied and advanced to step four of the evaluation process will be eligible to submit the supplemental application. 

The supplemental application is intended to align FA with Trump Administration priorities. The following policy changes are included:  

• “Climate-Focused Financing” was removed from the list of eligible activities for awards under the NOFA.
• “Eligible Market” was redefined to only include geographic, low-income, Native, and disability, removing race as an eligible factor.
• The definition of “Healthy Foods” in the Healthy Foods Financing Initiative will be amended to include foods and beverages consistent with the Trump Administration’s “Establishing the President’s Make America Healthy Again Commission” Executive Order and the USDA Dietary Guidelines for Americans 2020-2025. The structure of the program is expected to remain unchanged.  

CDFIs with applications that are not impacted by these policy changes do not have to submit the supplemental application to remain in consideration. However, OFN urges organizations to carefully review the NOFA to determine whether your organization should submit an updated application. The CDFI Fund will be contacting applicants who are eligible to submit a supplemental application.

CDFIs will have 30 days from the publication of the NOFA to submit their application. The deadline is subject to change in the event of a government shutdown.

CDFI Certification and Other Targeted Population (OTP)

At this time, the CDFI Fund is not making changes to Target Markets, in particular, OTPs, in the current round of CDFI certification. However, the Fund previewed there could be changes coming to the OTP designations sometime mid-next year. The changes to certification are happening in a separate workstream and are not impacted by the FA supplemental application announcement.

Other Updates on NOFAs and Award Announcement Timelines

OFN also received updates on other CDFI Fund programs and initiatives from Treasury as follows: 

• An announcement on Technical Assistance (TA) Awards is possible as soon as September 30, 2025, but there are no guarantees the Fund will meet that deadline. FA awards announcements are expected to be released in early 2026.   
• Bond Guarantee Program applications are currently in final review with OMB and are expected to move forward by September 30, 2025.   
• New Markets Tax Credit allocations are expected to be announced on time later this year. 
• Timeline around the disbursement of the Bank Enterprise Award program remains unclear, but application reviews are more streamlined and should move faster than FA. 
• Treasury is making internal tweaks to the Capital Magnet Fund to incentivize more rural financing activity. 
• There is no update to the status of the Small Dollar Loan Program.

Next Steps

This week’s news on the supplemental NOFA signals significant progress in resolving the impasse between Treasury and OMB, showcasing the considerable bipartisan support for CDFIs. These advances are a direct result of the tireless efforts the CDFI industry has engaged in over the past few months to sustain pressure on Congress and the administration.

OFN applauds the industry’s champions in Congress and Treasury for their relentless advocacy in moving these funds closer to where they are desperately needed in communities across the country. 

However, the fight is not over. OMB has yet to commit to a timeline for releasing the funds. The CDFI industry and its allies must continue pressing Congress to weigh in on this issue with Trump Administration officials.

The OFN policy team will continue to stay engaged with key policymakers on the issue — and we need your help. If you live in a Republican-led state or district and would like to maintain the momentum, use OFN’s Policy Action Center to tell your Members of Congress why CDFI funding is essential to your community!

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Tags: CDFI Leadership, Community Development, Congress, OFN, Public Policy