Two California nonprofits have sued the Trump administration to free up $289 million in the Community Development Financial Institutions Fund that will expire if not appropriated by the end of September.
The Trump administration has accused past administrations of using the CDFI Fund to pursue a “woke” policy agenda and has sought to shrink the program. In their lawsuit, the California-based Inclusive Action for the City and CAMEO Network accuse the administration of illegally withholding $289 million Congress provided for the fund’s fiscal year 2025 award programs. Without court action, that funding will expire on Sept. 30, they said.
“Defendants have never explained any of this,” the nonprofits said in their lawsuit. “They have identified no statute authorizing them to withhold the money. And they have said nothing at all about what the delay means for CDFIs that applied for those funds, or for the communities those CDFIs serve.”
The plaintiffs are asking the court to direct the administration to release the funds.
The lawsuit was filed in U.S. District Court for Northern California.
