Federal Court Confirms in Freedom Economy Case That $289 Million in CDFI Funding is Obligated & Will Not Lapse After September 30

(WASHINGTON, D.C.) TUESDAY, SEPTEMBER 29, 2026 — A federal district court judge today issued an oral order confirming that nearly $289 million in FY2025 Community Development

Financial Institutions (CDFI) Program funding has been obligated by the federal government and will not lapse after the September 30 fiscal-year deadline.

Freedom Economy Business Association filed its lawsuit and motion for emergency relief on September 21 to ensure the congressionally appropriated funding would be obligated and remain available to CDFIs after September 30. At the time Freedom Economy filed, the government had not confirmed that the funds had been obligated or would remain available after the deadline.

“For our members, this is the certainty we have been seeking,” said Tynesia Boyea-Robinson, Board Chair of Freedom Economy Business Association. “CDFIs need to be able to plan, lend and serve their communities knowing that the resources they were awarded will remain available. Today’s order provides an important measure of that certainty, while our work continues to ensure the process moves forward as it should.”

Following a hearing and additional submissions from both parties, the court confirmed that the funds have been obligated and will not lapse after September 30. As a result, Freedom Economy’s emergency motion is no longer necessary. The court also retained jurisdiction to address any inconsistency between the government’s representations to the court and its subsequent actions.

“Freedom Economy went to court because awardees needed more than an assurance that the government intended to act. They needed certainty that these funds would be protected after September 30,” said Alphonso David, lead counsel for Freedom Economy and President and CEO of the Global Black Economic Forum. “Today’s order provides the relief we sought at this stage. We will continue pursuing the underlying case to ensure the remainder of the CDFI process proceeds consistent with the law.”

Freedom Economy’s broader complaint against the federal government remains pending. The parties are scheduled to submit a joint status report to the court on October 14 regarding the next phase of the litigation.