diff --git a/CHANGELOG.md b/CHANGELOG.md
index a8cfdaef4..ffe26941c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@
 * UX Consistency: HTML page title display when third pane (detail record) displays. Refs UIOR-1202.
 * *BREAKING* Settings - implement Routing list configuration. Refs UIOR-1249.
 * *BREAKING* Implement central ordering settings for receiving search configuration. Refs UIOR-1232.
+* *BREAKING* Apply changes in the fund schema for the locations field. Refs UIOR-1251.
 
 ## [6.0.2](https://github.com/folio-org/ui-orders/tree/v6.0.2) (2024-04-01)
 [Full Changelog](https://github.com/folio-org/ui-orders/compare/v6.0.1...v6.0.2)
diff --git a/package.json b/package.json
index 5869e503e..52a2aefc8 100644
--- a/package.json
+++ b/package.json
@@ -28,7 +28,7 @@
       "finance.budgets": "1.3 2.0",
       "finance.exchange-rate": "1.0",
       "finance.expense-classes": "2.0 3.0",
-      "finance.funds": "1.0 2.0",
+      "finance.funds": "3.0",
       "finance.transactions": "4.0 5.0",
       "holdings-storage": "4.4 5.0 6.0",
       "identifier-types": "1.2",
diff --git a/src/common/utils/locationsRestrictedFunds.js b/src/common/utils/locationsRestrictedFunds.js
index 2b398d06c..f2ef03000 100644
--- a/src/common/utils/locationsRestrictedFunds.js
+++ b/src/common/utils/locationsRestrictedFunds.js
@@ -10,7 +10,9 @@ import partition from 'lodash/partition';
 export const filterFundsRestrictedByLocations = (locationIds, funds) => {
   if (!locationIds?.length) return funds;
 
-  const filteredFunds = funds.filter(({ restrictByLocations, locationIds: fundLocationIds }) => {
+  const filteredFunds = funds.filter(({ restrictByLocations, locations }) => {
+    const fundLocationIds = locations?.map(({ locationId }) => locationId);
+
     return !restrictByLocations || (intersection(locationIds, fundLocationIds).length > 0);
   });
 
@@ -32,7 +34,7 @@ export const filterLocationsByRestrictedFunds = (funds, locations, includeLocati
 
   const validLocationSet = new Set(
     restrictedFunds
-      .flatMap(({ locationIds }) => locationIds)
+      .flatMap(({ locations: fundLocations }) => fundLocations.map(({ locationId }) => locationId))
       .concat(includeLocationIds),
   );
   const validLocations = locations.filter(({ id }) => validLocationSet.has(id));
@@ -53,7 +55,9 @@ export const filterHoldingsByRestrictedFunds = (funds, holdings, includeHoldingI
 
   if (!funds?.length || unrestrictedFunds.length) return holdings;
 
-  const validLocationSet = new Set(restrictedFunds.flatMap(({ locationIds }) => locationIds));
+  const validLocationSet = new Set(
+    restrictedFunds.flatMap(({ locations: fundLocations }) => fundLocations.map(({ locationId }) => locationId)),
+  );
   const persistedHoldingIdsSet = new Set(includeHoldingIds);
 
   const validHoldings = holdings.filter(({ id, permanentLocationId }) => {
diff --git a/src/common/utils/locationsRestrictedFunds.test.js b/src/common/utils/locationsRestrictedFunds.test.js
index 4fa74e471..da6e61cd9 100644
--- a/src/common/utils/locationsRestrictedFunds.test.js
+++ b/src/common/utils/locationsRestrictedFunds.test.js
@@ -23,17 +23,23 @@ describe('Filtering funds and locations', () => {
         {
           id: '1',
           restrictByLocations: true,
-          locationIds: ['2', '4'],
+          locations: [
+            { locationId: '2' },
+            { locationId: '4' },
+          ],
         },
         {
           id: '2',
           restrictByLocations: true,
-          locationIds: ['3', '4'],
+          locations: [
+            { locationId: '3' },
+            { locationId: '4' },
+          ],
         },
         {
           id: '3',
           restrictByLocations: true,
-          locationIds: ['5'],
+          locations: [{ locationId: '5' }],
         },
         {
           id: '4',
@@ -66,7 +72,10 @@ describe('Filtering funds and locations', () => {
         {
           id: '2',
           restrictByLocations: true,
-          locationIds: ['1', '2'],
+          locations: [
+            { locationId: '1' },
+            { locationId: '2' },
+          ],
         },
       ];
       const holdings = [
@@ -83,12 +92,15 @@ describe('Filtering funds and locations', () => {
         {
           id: '1',
           restrictByLocations: true,
-          locationIds: ['4'],
+          locations: [{ locationId: '4' }],
         },
         {
           id: '2',
           restrictByLocations: true,
-          locationIds: ['1', '2'],
+          locations: [
+            { locationId: '1' },
+            { locationId: '2' },
+          ],
         },
       ];
       const holdings = [
@@ -114,7 +126,7 @@ describe('Filtering funds and locations', () => {
         {
           id: '1',
           restrictByLocations: true,
-          locationIds: ['4'],
+          locations: [{ locationId: '4' }],
         },
       ];
       const holdings = [
@@ -153,7 +165,10 @@ describe('Filtering funds and locations', () => {
         {
           id: '2',
           restrictByLocations: true,
-          locationIds: ['1', '2'],
+          locationIds: [
+            { locationId: '1' },
+            { locationId: '2' },
+          ],
         },
       ];
       const locations = [
@@ -170,12 +185,15 @@ describe('Filtering funds and locations', () => {
         {
           id: '1',
           restrictByLocations: true,
-          locationIds: ['4'],
+          locations: [{ locationId: '4' }],
         },
         {
           id: '2',
           restrictByLocations: true,
-          locationIds: ['1', '2'],
+          locations: [
+            { locationId: '1' },
+            { locationId: '2' },
+          ],
         },
       ];
       const locations = [
@@ -193,7 +211,10 @@ describe('Filtering funds and locations', () => {
         {
           id: '1',
           restrictByLocations: true,
-          locationIds: ['1', '3'],
+          locations: [
+            { locationId: '1' },
+            { locationId: '3' },
+          ],
         },
       ];
       const locations = [