The Treasury Department just opened up the federal wallet for community development programs across the country.
We’re talking about a fresh round of funding for fiscal years 2025 and 2026, distributed through the Community Development Financial Institutions Fund (CDFI).
So what’s actually getting funded? Four programs that sound bureaucratic but do some genuinely important work: the CDFI Program, the Native American CDFI Assistance Program (NACA), the Bank Enterprise Award Program (BEA), and the Small Dollar Loan Program (SDL). Together, these awards are designed to pump resources into underserved communities, help small businesses grow, and make financial services accessible to people who typically get shut out of traditional banking.
The Official Word From Treasury
“Today’s awards reflect Treasury’s commitment to ensuring responsible stewardship of taxpayer dollars and advancing economic opportunity in communities that need it most,” said Treasury Secretary Scott Bessent. He emphasized that Treasury plans to keep a close eye on these funds to make sure they actually do what they’re supposed to do—drive investment in low-income areas, spark local economic growth, and create tangible results.
CDFI Fund Director Chris Miller framed it in Main Street terms: “The awards announced today will help small businesses expand and create jobs, help workers build credit and save for the future, and help more families achieve the American dream.” It’s the kind of statement that sounds like a press release because, well, it is—but the programs themselves have real teeth.
Where’s the Money Coming From?
These awards are funded through the Full-Year Continuing Appropriations and Extensions Act, 2025 (that’s Public Law 119-4 if you’re keeping score at home). The money was set to expire on September 30, 2026, so Treasury is making sure it gets out the door and into communities before that deadline hits.
The Trump Administration has made it clear they’re watching how every dollar gets spent. Treasury is conducting audits, compliance reviews, and ongoing monitoring to prevent waste, fraud, and abuse. They’re also checking that recipients comply with federal anti-discrimination laws and various executive orders covering oversight, equal opportunity, and other federal requirements.
Translation: If you’re getting this money, you’d better use it right. Treasury has the authority to terminate unused funds, claw back money that was already distributed, or even decertify organizations that don’t play by the rules.
Breaking Down the Four Programs
The CDFI Program: Building Capacity Where It’s Needed
This program funds Community Development Financial Institutions—essentially financial organizations that serve communities traditional banks often overlook. These awards come in two flavors: Financial Assistance (FA) and Technical Assistance (TA).
FA awards can be used for financial products, loan loss reserves, capital reserves, and both financial and development services. TA awards help build organizational capacity and support emerging CDFIs as they work toward certification.
This is actually the second announcement for the FY 2025 application round. Back on September 30, 2025, Treasury announced more than $6.8 million in TA awards that were funded through FY 2024 appropriations.
The NACA Program: Supporting Native Communities
The Native American CDFI Assistance Program runs alongside the CDFI Program but focuses specifically on CDFIs serving Native American, Alaska Native, and Native Hawaiian communities. Like the CDFI Program, it offers both Financial Assistance and Technical Assistance through a competitive application process.
This is also the second FY 2025 announcement for NACA. The first round, announced on September 30, 2025, distributed $1.95 million in TA awards using FY 2024 funds.
The BEA Program: Incentivizing Banks to Do Better
The Bank Enterprise Award Program takes a different approach. Instead of funding CDFIs directly, it provides financial incentives to FDIC-insured banks that measurably increase their investments in CDFIs or ramp up their lending and services in severely distressed areas.
What counts as “distressed”? Areas where at least 30 percent of residents live below the national poverty line and unemployment runs at least 1.5 times the national average. These awards create a virtuous cycle—banks get rewarded for putting money into struggling communities, and those communities get better access to financial services.
The SDL Program: An Alternative to Predatory Lending
If you’ve ever seen a payday loan storefront and thought “there has to be a better way,” the Small Dollar Loan Program is trying to be exactly that. It helps certified CDFIs provide small loans through mainstream financial institutions, offering an alternative to the high-cost, predatory lending that traps people in debt cycles.
The program offers two types of awards: Loan Loss Reserves to help CDFIs create a safety net for small dollar lending, and Technical Assistance to fund technology, staffing, and other operational needs for running these programs.
What Happens Next?
Organizations that received awards will get official notifications through their CDFI Fund Awards Management Information System (AMIS) accounts by September 30, 2026. Examples of the Assistance Agreement terms will be posted to the CDFI Fund’s website in the coming weeks, so if you’re curious about the fine print, you’ll be able to dig in soon.
Want to learn more about how Treasury’s CDFI Fund is working to expand opportunity in communities across the country? Head to www.cdfifund.gov for the full rundown.