In its FY2027 budget proposal, the Trump Administration proposes cutting $204.5 million from discretionary awards for the Community Development Financial Institutions (CDFI) Fund, according to documents sent Friday to Senate Appropriations Committee Chair Susan Collins (R-Maine).
The President’s budget outlines key priorities for federal investment and will help shape the appropriations process in Congress in the months ahead. Appropriations committees in both chambers will construct bills that eventually go through Congress and to the president’s desk.
“While the President makes his budget request, Congress actually writes the budget, and we have seen this same pattern in almost every Trump budget.,” said Mike Beall, chief experience officer at CU Strategic Planning. “CU Strategic Planning has already started discussions with congressional appropriators and the Senate Community Development caucus. We will be fighting our way back to normal FY 2027 spending levels for CDFI in the months to come.”
CU Strategic Planning President Stacy Augustine added, “President Trump’s 2027 budget request includes significant cuts to the CDFI Fund, which is not unexpected. The President has attempted to zero out the CDFI Fund’s budget in every budget during both of his terms. Both houses of Congress, on both sides of the aisle, have responded every year by continuing to fund what they and their constituents know is a valuable program that advances opportunity in communities across this country.”
Scott Simpson, President and CEO of America’s Credit Unions, issued the following statement in response to the overall proposal:
“President Trump’s FY2027 budget proposal outlines a number of significant policy changes that will impact credit unions and the communities they serve. Several elements of the proposal raise concerns for credit unions and the 145 million Americans they support every day.
“The proposed reduction to the CDFI Fund would significantly scale back a proven tool for expanding access to affordable financial services, particularly in underserved communities like rural America. Additionally, the introduction of new administrative fees on lenders participating in Small Business Administration programs risks increasing costs and limiting access to capital for small businesses.
“Credit unions play a vital role in supporting local economies, providing safe and affordable financial services, and helping small businesses grow. Policies that reduce investment in community development or increase the cost of lending could make it more difficult for institutions to support Main Street America.
“We look forward to working with Congress and the Administration to ensure the final budget supports access to affordable financial services, protects consumers, and strengthens the communities credit unions serve.”
America’s Credit Unions has been consistent in its support for full funding for the CDFI Fund, noting in previous advocacy efforts that credit unions generate $12 in private capital for each federal dollar awarded through the program. Last year’s Presidential Budget aimed to effectively “zero out” the fund, but after a diligent education campaign with lawmakers, the CDFI Fund was ultimately funded by both the House and Senate for FY2026.
America’s Credit Unions’ Advocacy team is working with the Administration and Congress, so they understand the positive impact of the CDFI Fund and its net return in rural, suburban and urban communities nationwide.
As in previous budget cycles, the President’s request represents the beginning of the appropriations process, with final funding levels determined by Congress. In FY2026, Congress maintained CDFI Fund support at $324 million despite similar proposed reductions.
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