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.”
“Proposals to reduce funding for the CDFI Fund are concerning at a time when communities across the country are relying on access to safe, affordable financial services. CDFIs play a critical role in expanding economic opportunity, particularly in underserved areas, and any reduction in support risks limiting that impact,” said Scott Simpson, President and CEO of America’s Credit Unions. “We share the President’s focus on revitalizing rural communities. With nearly 900 credit union branches serving as the sole financial institutions in those census tracts, credit unions are often the only access point for financial services and remain committed to reaching underserved communities wherever they are. We look forward to working with Congress to ensure these vital investments remain strong and continue to meet the needs of American families and small businesses.”
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.
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