House lawmakers are proposing to reduce funding for the Community Development Financial Institutions Fund below current levels, although not as drastically as recommended by the White House.
The House Appropriations Committee on Sunday released the Financial Services and General Government Appropriations Bill for review. Among its many provisions, the bill sets aside $276 million for the CDFI Fund in the proposed budget for fiscal year 2026, which is $48 million less than the current fiscal year, according to an analysis by the CDFI Coalition. However, it is $176 million more than the Trump administration’s budget request.
The White House in May released a budget request that would strip the CDFI Fund’s ability to allocate discretionary awards. It instead proposed $100 million to create a Rural Financial Award Program, with 60% of CFDI loans and investments going to rural communities. The committee’s proposed budget does not currently include funding for the program.
The House Appropriations Financial Services and General Government Subcommittee is scheduled to consider the bill today.
