Freedom Economy Business Association Sues Federal Government to Protect $289 Million for Community Lenders and Small Businesses
Funding approved by Congress could disappear September 30 before reaching CDFIs and the communities they serve
(WASHINGTON, D.C.) MONDAY, SEPT. 21, 2026 — The Freedom Economy Business Association today filed a federal lawsuit to protect $289 million in funding for Community Development Financial Institutions (CDFIs) that is at risk of expiring on September 30.
CDFIs are community lenders that provide capital to small businesses, entrepreneurs, affordable housing, health clinics, child-care centers, and communities that traditional financial institutions often do not adequately serve.
Congress approved the funding. CDFIs applied for it more than a year ago. But with days remaining before the deadline, the money still has not reached the institutions and communities it was intended to support.
Freedom Economy is asking the court to require the U.S. Department of the Treasury to award the FY2025 funds before the money expires.
“Small businesses and communities do not experience this as an abstract funding dispute. They experience it as capital that cannot move, projects that cannot advance and opportunities that disappear,” said Tynesia Boyea-Robinson, Chair, Freedom Economy. “Freedom Economy exists to help our members act when the rules and institutions they rely on are threatened. This is one of those moments.”
The clock is running out
CDFIs submitted applications for FY2025 funding in March 2025. Eighteen months later, the process remains unfinished.
Treasury announced awards on September 15, but it did not release a list of recipients or the total amount awarded. As of Freedom Economy's filing, the FY2025 funds have not been obligated and are thus at risk of expiring.
If the process is not finished by September 30, the $289 million approved for these programs could expire.
“Congress made a decision to invest these dollars in communities across the country,” said Alphonso David, Lead Counsel and President & CEO of the Global Black Economic Forum. “The government should not be able to run out the clock on that decision or impose unauthorized conditions on these funds — effectively failing to meet their obligations and nullifying the appropriations Congress enacted. We are asking the court to make sure the law is followed, and the funding reaches the institutions Congress intended it to reach.”
Why this matters
CDFIs fill gaps in the financial system, particularly in rural communities, neighborhoods that have experienced decades of underinvestment and other places where access to affordable capital is limited.
Federal CDFI funding also helps attract additional private and philanthropic investment, meaning every federal dollar can help bring more capital into communities.
The program has a long history of bipartisan support. Presidents and members of Congress from both parties have supported CDFIs and their role in expanding access to capital.
Freedom Economy is bringing the case on behalf of its members, including CDFIs waiting for FY2025 funding.
“Ultimately, this is about whether businesses, investors and communities can rely on the rules Congress put in place,” Boyea-Robinson said. “When government can simply ignore those rules and fail to meet their obligations to the public, the consequences extend far beyond one program.”
Legal counsel representing the Freedom Economy are Alphonso David, President & CEO of the Global Black Economic Forum, and Crowell & Moring LLP led by Daniel W. Wolff and Derick D. Dailey.
Press Conference Recording
Watch the recording of Freedom Economy leaders, legal counsel, and invited national leaders discussing the case, the role CDFIs play in communities, and what is at stake as the September 30 deadline approaches.
Watch the press conference recording
MEDIA CONTACTS
Members of the media interested in attending or receiving additional information should contact:
Michael Franklin
Global Black Economic Forum
[email protected]
Ellisa Brown
The Shearer Group
[email protected]
214-709-6159 cell
About Freedom Economy
The Freedom Economy Business Association is a membership organization of justice and sustainability investors. Amid the increasingly politicized legal and economic landscape, we resource investors with the knowledge, strategic tools, and community they need to stand boldly in their power. We represent them through coordinated legal action and provide access to experienced values-aligned counsel, on-demand legal resources, and a trusted peer network.
As the collective owners of American business, investors are our nation’s most powerful social change-makers. Freedom Economy exists to protect and affirm investors’ legal rights so they can continue advancing a more equitable future for all with confidence, clarity, and collective strength.
