Treasury Proposed New CDFI Information Collection Rules
The rule changes remove race-based criteria for defining targeted market populations for CDFI funding.
Updated on Oct. 1, 2026 in Economic Policy
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The U.S. Treasury Department released a Federal Register notice proposing a new information collection regime for the Community Development Financial Institutions (CDFI) Fund. The changes would eliminate specific race and ethnicity factors from the eligibility requirements for targeted market populations.
Why it matters
The proposal follows the Trump administration's characterization of previous funding criteria as promoting harmful ideologies. These changes alter how financial institutions must categorize the communities they serve to qualify for federal support.
The Treasury Department obligated $289 million in congressionally approved CDFI funding prior to the September 30, 2026 deadline. This disbursement followed a period where the funds had been withheld by the Office of Management and Budget.
The players
Treasury Department
The executive department responsible for federal financial oversight and the administration of the CDFI Fund.
Office of Management and Budget
The federal agency that oversees the implementation of presidential policy across the executive branch and manages the federal budget process.
The details
The Treasury Department issued a notice outlining an information collection regime that redefines targeted market eligibility. Under the proposed rules, African American, Hispanic, Pacific Islander, Filipino, and Vietnamese populations are removed as eligible targeted market types. This shift removes race and ethnicity as factors in the regulatory framework used to determine institution qualification.
Timeline
The $289 million in funding was obligated by September 30, 2026.
The public comment period for the rule changes closes on November 30, 2026.
Market Landscape
This move represents a shift in federal oversight protocols regarding the CDFI Fund information collection rules. It marks a policy departure from the previous criteria used to define qualified market populations.
Institutions currently relying on CDFI support should review their reporting procedures to ensure compliance with the proposed information collection changes. Operators should prepare to re-evaluate their targeted market definitions if these rules are finalized following the comment period.
The takeaway
The proposed changes significantly redefine how institutions must classify their service areas to remain eligible for federal CDFI funding. Operators should monitor the Federal Register through November 30, 2026, to determine how these adjustments impact their specific funding applications.
What happens next
The Treasury Department is accepting public comments on the proposed rule changes until the deadline of November 30, 2026.
Further reading
For more on regulatory updates, visit Economic Policy.
Source note: This article includes information reported by American Banker.
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