Freedom Economy Sues Treasury Over $300 Million Grant Delay

The Freedom Economy Business Association filed a lawsuit against the U.S. Treasury Department on September 21, 2026, in the U.S. District Court for the District of Columbia. The suit alleges that the Treasury unlawfully withheld nearly $300 million in fiscal year 2025 funding for Community Development Financial Institutions (CDFIs) that had been approved by Congress.

Plaintiffs are seeking a temporary restraining order to prevent the funds from expiring on September 30, while also requesting the distribution of an additional $289 million for fiscal year 2026. The Trump administration has previously justified the withholding of funds by accusing the lenders of promoting "partisan agenda," "gender extremism," and "climate radicalism."

Community lenders report that the funding delays have already caused one CDFI to close and forced others to lay off staff or accrue debt. Tynesia Boyea-Robinson, chair of Freedom Economy, stated that the federal government has refused to follow the law and meet its obligations, leaving many members unable to serve the millions of people who rely on them.